Tax season guide for your M1 IRA

This article covers important details to help you prepare for tax season with your M1 IRA account. Learn about contribution limits and deadlines, earned income rules, and which tax forms may apply.

The IRS sets annual contribution limits for IRAs, which apply across all IRAs you own—including those at other brokerages. IRAs include Traditional, Roth, and SEP IRAs. Contribution limits do not include rollovers or dividends.

You may contribute up to the IRS annual limit between all your Traditional and Roth IRAs combined. The contribution limits for recent tax years are:

2025

2024

Note:

If you file taxes jointly and your spouse has earned income, you might be eligible to contribute to your own IRA even if you don’t personally earn income. Each spouse must open their own M1 account and IRA in their own name.

M1 does not offer a “Spousal IRA” account type.

For more details, please refer to this article for additional IRS guidance.

You have until the annual tax filing deadline (usually April 15) to make IRA contributions for the previous tax year.

Example:

2025 IRA Contribution between January 1, 2025 and December 31, 2025: Select “Current Year” when making your deposit.

2025 IRA Contribution between January 1, 2026, and the tax deadline (typically April 15, 2026): Select “Prior Year” when making your deposit.

You can only contribute to an IRA using qualified earned income.

Examples of earned income:

Income that does NOT qualify:

Important:

If you contribute to an IRA without having enough earned income, the IRS may assess a 6% penalty tax for excess contribution every year the excess remains in your IRA.

Income qualifications can change with IRS rules. For any questions about your eligibility, consider checking with a tax professional.

Based on your IRA activity, you may receive the following tax forms:

Form 1099-R: Reports IRA withdrawals, rollovers, conversions, and recharacterizations. Generally available in early February.

Form 5498: Reports IRA contributions and rollovers. Typically available in early June.

You may receive different forms depending on your IRA activity, such as conversions, recharacterizations, or contribution year changes.

M1 and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only. It is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.

Brokerage accounts on the M1 platform are either fully disclosed to APEX Clearing or cleared through M1 Finance LLC. Please look at your account statement to determine how your account is cleared.

All investing involves risk, including the risk of losing the money you invest. Past performance does not guarantee future performance. Using margin can add to these risks. Users utilizing APEX cleared margin accounts should review the APEX margin account risk disclosure before borrowing. Users utilizing M1 cleared margin accounts should review the M1 margin account risk disclosure before borrowing. M1 Margin Loans are available on margin accounts with at least $2,000 invested per account. Not available for Retirement or Custodial accounts. Margin rates may vary.

Brokerage products and services are offered by M1 Finance LLC, Member FINRA / SIPC, and a wholly owned subsidiary of M1 Holdings, Inc.

This content was generated using artificial intelligence and is intended for informational and educational purposes only. While reasonable efforts are made to ensure accuracy, AI-generated outputs may omit key context; and should not be construed as financial, investment, legal, or tax advice. Users should independently verify all information and consult a qualified professional before making any financial decisions.

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