NASE Blogs

IRA Contributions

Jul 14, 2010

Q: What are the contribution limits in 2010 for traditional IRAs and Roth IRAs?

A: The contribution limits for individual retirement accounts depend on your age.If you’ll be age 50 or older by the end of the year, the limit is $6,000. If you’ll be younger than age 50, the limit is $5,000.The reason for the difference is catch-up contributions, which are designed to help people save more as they move closer to retirement age. Be aware that the maximum contribution is a combined limit. In other words, you can’t contribute that amount to both a Roth IRA and a traditional IRA.Also be aware that you must meet certain income limits before being eligible to contribute to a Roth. In 2010, the maximum income limit for Roth IRA contributions is $167,000 for married couples filing jointly and $105,000 for single taxpayers.