The federal government imposes the contribution limits for all types of IRA contributions. The chart is given below for the reference.
|
Year\Age
|
49 or less
|
50 & Above
|
|
2002
|
USD 3000
|
USD 3500
|
|
2003
|
USD 3000
|
USD 3500
|
|
2004
|
USD 3000
|
USD 3500
|
|
2005
|
USD 4000
|
USD 4500
|
|
2006
|
USD 4000
|
USD 5000
|
|
2007
|
USD 4000
|
USD 5000
|
|
2008
|
USD 5000
|
USD 6000
|
It is advised to utilize this facility and invest the maximum allowed contribution through this route because of the tax benefits associated.
If you could not deposit the maximum allowed contribution in any particular year, you are not allowed to carry forward it to the coming years. You loose the benefit proportionately.
An individual may make an annual non deductible contribution to a Roth IRA that may not exceed the smaller of the maximum allowable annual IRA contribution or 100% of the individual's earned income for that year, minus the total of all contributions for that tax-year to all other individual retirement plans owned by that person (other than Education IRAs) .
you may contribute to a Roth IRA even if you are covered by a company retirement (pension/401(k)/profit sharing) plan.
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