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Roth and Traditional IRA Contribution Limits
Posted By Jim On 02/23/2010 @ 12:29 pm In Retirement | 25 Comments
I, like many other personal finance bloggers, am a huge fan of IRAs because they give you a tax-advantaged opportunity to save for your retirement. Both types, the Roth and the Traditional, offer tax benefits that are hard to find anywhere else. The Roth IRA offers you to reap the growth of your retirement assets tax free while the Traditional IRA gives you an immediate tax benefit for contributing to your own future.
There’s a reason why the IRS puts contribution limits on IRA accounts. As many of you know, you have until April 15th to make a contribution to your Traditional or Roth IRA for the 2009 tax year. What you may not know is how much you’re able to contribute.
In addition to the current year’s contribution limit, I’ve also included some historical limits to put the current IRA contribution limit into a bit of perspective (as you can see, not much has changed!):
|Tax Year||Contribution Limit||Catch-Up (50+)|
The value in the “Catch-Up” column is how much more someone aged 50 and over can contribute towards their IRA.
With the Roth IRA, your contribution is limited by your modified adjusted gross income and the phaseout starts at $112,000 for single filers, $178,000 for married filing jointly). Rather than explain all the math, I created a calculator that does the math for you. May I present this very simple Roth IRA phaseout calculator . If you provide your modified adjusted gross income and your filing status, it will tell you how much you can contribute.
(Photo: dawnzy )
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 Roth IRA phaseout calculator: http://www.bargaineering.com/articles/roth-ira-contribution-limit-phaseout-calculator.html
 dawnzy: http://www.flickr.com/photos/dawnzy/484470148/sizes/s/
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