IRA Rules
Individual Retirement Account Rules

IRA Rules And Information

 

The 2010 - 2011 IRA Contribution Limits

If you are under 50 years old at the end of the contribution year, your maximum annual deductible contribution is limited to $5000 or the amount of compensation you earned, whichever is smaller.

If you are 50+ years old at the end of the contribution year, your maximum annual deductible contribution is limited to $6000 or the amount of compensation you earned whichever is smaller.

Spousal IRA - If a spouse makes less than the primary earner they may also contribute to a separate IRA account following the same guidelines. For example, if Betty is a stay at home mom and is married to Bill who earns $50,000 and Bill who is 53 contributes $6000 to his IRA then Betty bases her contribution limit on an income of $50,000 - $6000 or $44,000. So if she is 50 or over she could contribute $6000 or $5000 is she was under 50 years old.

In all cases, deductibility is subject to the following Modified Adjusted Gross Income (AGI) limits for 2010.