Maximum IRA Contribution

What Is My: Maximum IRA Contribution

Contributing to a retirement plan is one of the best ways to ensure you will have adequate income later in life. You are really trying to estimate how much money you will require for living expenses, unforeseen emergencies, and medical costs. This requires some level of foresight because this can be different for everyone and be hard to predict. The best we can do is plan ahead. This makes maximizing our resources today of great importance. Once you retire, you will not have the security of a weekly paycheck from an employer. However, you can supplement your future income with a maximum IRA contribution today.

A traditional IRA or Roth IRA increases your retirement savings in combination with a 401k plan. Since the maximum IRA contribution limits change each year, make sure you have the latest information in order to get the most out of your money. Regardless, you will need to factor in your age, as well as your income tax filing status to figure out the maximum IRA contribution amount.  The exact allowable amount will vary based on these factors.   

As of 2010, if you are married and filing a joint return, the combined income between you and your spouse must not exceed $167,000 if you are over 50 in order to qualify for the $6,000 maximum. When your combined income is more than $176,000, you cannot make any contributions through an IRA plan.  For those whose filing status is single, head of household, or married filing separately (not living with spouse), you can make the maximum contribution of $6,000 if you are over 50, and your income is $105,000 or less.  Your maximum amount is $5,000 if you are under 50 and have the same income level.  Further, you are married but filing separately and lived with your spouse during any part of the tax year, you can make the maximum contributions for each age if your income is zero.  Income of $10,000 or more qualifies for zero contribution. 

If you have any questions about the above, your best bet is to speak with either a financial advisor, accountant or IRA fund manager to get further clarification on your maximum ira contribution limits.  They can offer the best guidance based on knowledge of your goals and personal financial situation.