IRA Contribution Limits 2011
IRA Contribution Limits 2011 establish the most you can save for retirement via individual retirement accounts. The standard IRA and Roth IRA 2011 contribution limits, plus the 2011 standard IRA deductibility restrictions and the 2011 Roth IRA income limits, are all important considerations.
(Note : If you are searching for the IRA limits for 2010 related to the April 15, 2011 tax filing deadline, review the 2010 IRA contribution limits instead of this article which is specific to IRA Contribution Limits 2011).
IRA Contribution Limits 2011
The IRA Contribution Limits 2011 have not changed from 2010. Starting in 2008, the maximum you may contribute to a regular IRA each year is $5,000. But, if you will be 50 years of age or older by the end of the IRA Contribution Limits 2011 cutoff, you are allowed to contribute an additional $1,000, for a $6,000 total IRA contribution limit. Remember that you and/or your spouse are required to have earned income at least as much as the amount you contribute to comply with IRA contribution limits 2011.
These IRA Contribution Limits 2011 restrictions apply to both standard and Roth IRAs. Although you may be eligible to contribute to both plans, your combined contribution to both accounts may not be greater than your limit above ($5,000 or $6,000).
2011 Deductible IRA Contribution Limits
Although there is no maximum income restriction for contributing to a regular IRA under IRA Contribution Limits 2011 guidelines, there are income caps to deducting standard IRA contributions, which will be different based on marital status, income, and workplace retirement (e.g., 401(k), 403(b) plan eligibility).
2011 Roth IRA Income Limits
IRA Contribution Limits 2011 state that unlike standard IRA contributions, not every worker can contribute to a Roth IRA. Based on an individual’s marital status and income, some upper earners are not eligible to contribute to Roth IRAs. However, because these plans are so advantageous to your preparations for retirement, be sure to understand the restrictions each year before concluding you don’t qualify.
2011 Roth Conversion Income Limits
Even if you earn too much income for a direct Roth IRA contribution, you may be able to use a Roth IRA via the backdoor. The opportunity to convert a regular IRA to a Roth IRA became accessible to everyone regardless of income on January 1, 2010. Historically, a conversion was only accessible to earners who had a modified adjusted gross income of $100,000 or less, which is different for IRA Contribution Limits 2011.
For more information, consult IRS Publication 590.
For information about Roth IRA Contribution Limits 2011, click here.
IRA Contribution Limits 2011
…are changing in 2012! Come back for more updates.