IRA Contribution Limits 2010 and 2011
IRA Contribution Limits
For several years, the contribution limit for an IRA stayed at $2,000, but policymakers realized that inflation made this limit inadequate for meeting the retirement planning needs of individuals. If you are using IRAs to fund your retirement, there is some good news about the 2010 and 2011 limits.
In 2010, the contribution limits on traditional IRAs and Roth IRA was $5,000. If you reach the age of 50 before the end of the calendar year, then you’re entitled to an additional catch-up contribution of $1,000. That brings your total to $6,000 if your age 50 or older by the end of 2010.
Traditional IRA Income Limits 2010
In 2010, the modified adjusted gross income or AGI contribution limits for traditional IRAs were raised. If you are covered by a retirement plan at work, then your tax-deductible contribution to a traditional IRA is phased-out if:
• Your filing status is married filing jointly, and your AGI is more than $89,000 but less than $109,000.
• Your filing status is single or head of household, and your AGI is more than $56,000 but less than $66,000.
If your tax filing status is married filing separate returns, then your deductible phase out starts at under $10,000.
Traditional IRA Income Limits 2011
In 2011, the modified adjusted gross income or AGI contribution limits for traditional IRAs were raised. If you are covered by a retirement plan at work, then your tax-deductible contribution to a traditional IRA is phased-out if:
• Your filing status is married filing jointly, and your AGI is more than $90,000 but less than $110,000.
• Your filing status is single or head of household, and your AGI is more than $56,000 but less than $66,000.
If your tax filing status is married filing separate returns, then your deductible phase out starts at under $10,000.
SIMPLE IRA Contribution Limits in 2010 and 2011
In 2010, the employer salary-reduction contribution that applies to SIMPLE IRAs remained at $11,500. For workers that are age 50 and older, your employer can make additional “catch up” contributions of $2,500, bringing the total contribution limit in 2010 for SIMPLE IRAs to $14,000. In 2011, the employer salary-reduction contribution remains at $11,500, keeping the total contribution limit at $14,000.
Roth IRA Income Limits 2010
In 2010, the following income limit rules apply to Roth IRAs:
• Single filers with modified adjusted gross income up to $105,000 can make a full contribution. If your adjusted gross income is in excess of $120,000, then you cannot make a contribution to a Roth IRA.
• Joint filers with modified adjusted gross income up to $167,000 can make a full contribution. If your adjusted gross income is in excess of $177,000, then you cannot make a contribution to a Roth IRA in 2010.
Roth IRA Income Limits 2011
In 2011, the following income limit rules apply to Roth IRAs:
• Single filers with modified adjusted gross income up to $107,000 can make a full contribution. If your adjusted gross income is in excess of $122,000, then you cannot make a contribution to a Roth IRA.
• Joint filers with modified adjusted gross income up to $169,000 can make a full contribution. If your adjusted gross income is in excess of $179,000, then you cannot make a contribution to a Roth IRA in 2011.
Contribution Limits in 2010 and 2011
The contribution limits for traditional and Roth IRAs remains at $5,000 in 2010 and 2011. The catch up contribution for those ages 50 and older by the end of 2010 or 2011 will remain at $1,000. Therefore, you can contribute up to $6,000 to a Roth or traditional IRA if you’re age 50 and older.
See Publication 590, Individual Retirement Arrangements (IRAs), for additional information.
Therefore, you can contribute up to $6,000 to a Roth or traditional IRA if you’re age 50 and older.
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