2020 IRA contribution limits: $6,000 under 50, $7,000 with catch-up
The 2020 contribution limits did not change from 2019. What did change was almost everything else around them: the SECURE Act of 2019 took effect, the COVID-19 pandemic hit in March, the CARES Act of March 2020 suspended required minimum distributions for the year, and the IRS extended the contribution deadline to 15 July 2020. For Roth IRA holders looking back from 2026, 2020 is the year the inherited-IRA stretch disappeared and the Roth's legacy advantage became permanent.
2020 limits at a glance
$6,000
per year, all IRAs combined
$7,000
$6,000 base + $1,000 catch-up
15 May 2021
Extended from 15 April 2021 by IR-2021-59
Source: IRS Notice 2019-59. Deadline extension: IR-2021-59, which extended individual 2020 filings (and therefore prior-year contribution deadlines) to 15 May 2021.
2020 Roth IRA income phase-outs
| Filing status | Full contribution if MAGI below | Phase-out range | No contribution above |
|---|---|---|---|
| Single / Head of household | $124,000 | $124K to $139K | $139,000 |
| Married filing jointly | $196,000 | $196K to $206K | $206,000 |
| Married filing separately | $0 | $0 to $10K | $10,000 |
SECURE and CARES: a one-year double-act on retirement accounts
The 2020 contribution year was bookended by two of the most consequential pieces of retirement-account legislation in a generation. The SECURE Act of 2019 took effect on 1 January 2020. The CARES Act was signed 27 March 2020 in the early panic of the COVID-19 lockdown. Together they reshaped how IRAs work in retirement, what happens when an IRA holder dies, and how taxes are paid on withdrawals during a downturn.
SECURE's three big provisions: (1) RMD age moved from 70.5 to 72, (2) no more age cap on Traditional IRA contributions, and (3) the stretch IRA was replaced for most non-spouse beneficiaries with a 10-year mandatory drawdown. The 10-year rule is critical to the Roth case: a Traditional IRA passed to an adult child is now taxed at the child's ordinary income rate over ten years, often during their peak earning years; a Roth IRA passed to that same child is also drained within ten years but no income tax is owed. For a beneficiary in the 32% bracket, the after-tax inheritance difference is roughly a third of the balance. See SECURE Act in the FY2020 appropriations bill.
CARES added two IRA-relevant provisions. CARES §2203 suspended all RMDs for 2020. Anyone who had already taken an RMD before the bill passed in late March was permitted to roll it back into the IRA within 60 days, later extended by IRS Notice 2020-51 to 31 August 2020. CARES §2202 created the Coronavirus-Related Distribution: a qualified individual could withdraw up to $100,000 from a retirement account in 2020 without the 10% early-withdrawal penalty, spread the resulting income tax over three years, and repay the distribution within three years to avoid the tax entirely. Both provisions applied to Traditional and Roth IRAs. See CARES Act, H.R. 748.
For Roth conversion planning, 2020 was the conversion year of the decade. The market crashed in March (S&P down roughly 34% from peak to trough), conversions could be executed at depressed asset values, and the RMD suspension meant pre-conversion Traditional balances were not artificially inflated by skipped distributions. By December the S&P had recovered and surpassed its previous peak; converted balances that had been valued near the bottom recovered inside the Roth wrapper, tax-free.
Looking back from 2026, 2020 is the textbook example of why Roth conversions should be tactical, not calendar-driven. The headline 2020 contribution limit was identical to 2019, but the strategic landscape was unrecognisable. Anyone who used the 2020 market dislocation to convert at low valuations is sitting on a Roth balance today that captured a significant fraction of the 2020-2025 bull-market run, tax-free.
What changed from 2019
- Base limit unchanged at $6,000 (IRC §415(d) rounding did not push to the next $500).
- Catch-up unchanged at $1,000.
- Roth phase-outs nudged up: single from $122K-$137K to $124K-$139K, MFJ from $193K-$203K to $196K-$206K.
- RMD age moved from 70.5 to 72 (SECURE Act).
- Age cap on Traditional IRA contributions removed (SECURE).
- Stretch IRA replaced by 10-year rule for most non-spouse beneficiaries (SECURE).
- All 2020 RMDs suspended (CARES Act §2203).
- Coronavirus-Related Distributions up to $100K permitted, penalty-free, 3-year repayment (CARES §2202).
- Contribution deadline extended to 15 July 2020 by IRS Notice 2020-23.
FAQ
What were the 2020 IRA contribution limits?
$6,000 under 50 and $7,000 with the $1,000 catch-up if 50 or older. These limits applied across all of your IRAs combined.
Were 2020 required minimum distributions waived?
Yes. CARES Act §2203 suspended all RMDs for 2020. People who had already taken an RMD before the bill passed were allowed to roll it back to the IRA, with the deadline extended to 31 August 2020 by IRS Notice 2020-51.
When did the SECURE Act take effect?
1 January 2020. The Act was signed 20 December 2019 as part of the year-end Further Consolidated Appropriations Act and its retirement provisions took effect on 1 January 2020.
What was a Coronavirus-Related Distribution?
A CARES Act §2202 provision allowing qualified individuals to withdraw up to $100,000 from retirement accounts in 2020 without the 10% early-withdrawal penalty, spreading the resulting income tax over three years and with the option to repay the distribution within three years to undo the income inclusion.
Was 2020 a good year for Roth conversions?
Yes for those who acted during the March 2020 market crash. Converting at depressed asset values meant the conversion tax was based on a lower balance, and the subsequent recovery happened inside the Roth wrapper tax-free.
Did the 10-year inheritance rule apply to 2020 deaths?
Yes, for deaths on or after 1 January 2020. Pre-2020 deaths were grandfathered under the old stretch IRA rules. The 10-year rule applies to most non-spouse beneficiaries; eligible designated beneficiaries (surviving spouses, minor children of the owner, disabled or chronically ill beneficiaries, and beneficiaries less than 10 years younger) can still stretch.
Not financial, tax, or legal advice. Figures sourced from IRS Notice 2019-59, the SECURE Act of 2019, the CARES Act of 2020, IRS Notice 2020-23 and IRS Notice 2020-51. Tax laws change; your facts differ. Consult a fiduciary financial advisor, CPA, or qualified retirement planner. The 2020 tax year is closed.