Contribution Limits
The maximum amount you can contribute to a Traditional IRA depends on your age. These are the correct Traditional IRA contribution limits for 2009 and 2010. This limit can be split between a Traditional IRA or Roth IRA, but the combined total of your contributions to your Traditional and Roth IRAs cannot exceed this limit.
- Under age 49 at the end of the year: $5,000
- Age 50 or older by the end of the year: $6,000
Deadline for Contributions
Contributions for a year can be made any time that year or until the due date of your tax return for that year. Contributions for 2009 must be made between January 1, 2009 and April 15, 2010. Contributions for 2010 must be made between January 1, 2010 and April 15, 2011. You can designate for which year (current or previous) you are making contributions if you contribute between January 1 and April 15.
Tax Deduction for Contributions
How much of this contribution you can deduct on your tax return depends on your adjusted gross income and whether or not you are covered by an employer-sponsored retirement plan at work.
- For 2009 deduction limits if you are covered by a retirement plan at work, click here.
- For 2009 deduction limits if you are NOT covered by a retirement plan at work, click here.
- For 2010 deduction limits if you are covered by a retirement plan at work, click here.
- For 2010 deduction limits if you are NOT covered by a retirement plan at work, click here.
You may also be eligible for the Retirement Savings Contribution Credit.
