Maximum annual contribution to IRA's?

Question

I vaguely remember that the annual max contribution is $4000. But is this for a Traditional IRA, Roth IRA, or is the $4000 cap for both?

Is there any max for Traditional IRA's?

Answer 1

The max annual contributions are the same for both IRAs, either the Traditional or the Roth. You can contribute to both at the same time, provided that the combined contributions do not exceed the limits.

For most people, the annual limit is $4000 in 2007, and I believe that the 2008 contribution limit is $5000.

For older folks (> 55), they can contribute an additional $1000 catch-up amount, in addition to the above mentioned limits.

Answer 2

The max is 4000K for both, but the limit changes yearly. As next year it might be higher. Stay up to date with the figures. Both IRA's will always have them same caps. The only differences between the two deals with taxes. If you are young I recommend Roth IRA.

Accountant 2 Years

Answer 3

THe maximum is for a ROTH - Max the ROTH first (Tax Free) - then put into the traditional.

Answer 4

http://www.irs.gov/pub/irs-pdf/p590.pdf

here is the 2006 version..it will spell out all the guidelines of traditionals and roths...... typical of governemt work they dont publish the rules for the year until the year is almost over.

Answer 5

Go to www.irs.gov. It can be different for everyone. Roth is a better I.R.A. for sure.