By Brad Sanders, CFP®, CRPC®

It’s that time of year again – time to prepare for the 2019 tax deadline of April 15, 2020. As a reminder, you have until that date to contribute to your Traditional or Roth IRA for the 2019 tax year. Taxpayers age 49 and younger with earned income can contribute $6,000, while taxpayers 50 and over can contribute $7,000. Keep in mind that certain income limitations exist for direct funding to Roth IRAs, while Traditional IRA contribution deductions can be affected by both income level and retirement plan participation status. For more information, visit Be sure to confirm with your tax professional how these items apply to your individual situation. We invite you to contact your advisor at Stonebridge Financial Group as well to see if your plan dictates funding one of these accounts.

Traditional IRAs and Roth IRAs both offer significant tax benefits, although it is important to understand some of the biggest differences between them. A Traditional IRA contains pre-tax dollars that can potentially lower your taxable income, grow tax deferred, and then distribute taxable income in the future. A Roth IRA contains after-tax dollars that grow tax deferred, and then potentially distribute tax-free income, subject to certain stipulations.

The recently passed SECURE Act introduced some of the following substantial changes to IRAs. Going forward, people with earned income can contribute to Traditional IRAs past age 70 – The age dictating Required Minimum Distributions that need to be taken from Traditional IRAs has been raised from 70 to 72 years. The ability to make charitable distributions from Traditional IRAs is still available to people age 70 and older, which continues to present a beneficial planning opportunity. The ability for a non-spouse beneficiary to stretch Inherited IRA distributions for their lifetime has been amended, so now these IRA account recipients are required to distribute all of the funds within ten years.

Having an informed discussion about Traditional and Roth IRAs and the many planning strategies that are available is one of the benefits of having a relationship with a financial advisor. In addition to looking at investment strategies, clients can benefit from an experienced professional who is well-versed in the tax and estate planning implications of different retirement accounts. If you are interested in learning more about these services, please visit

Brad SandersBrad Sanders has been a lifelong resident of Central PA. He began in the financial services industry in 2007. Prior to that, he attended St. Vincent College in Latrobe, PA where he was also a member of the baseball team. He earned his Certified Financial Planner® certification in 2012 and his Chartered Retirement Planning Counselor® designation in 2013.