How much can you contribute to an IRA or ROTH IRA for the 2008 calendar year?
- $5,000 for those age 49 and under
- $6,000 for those age 50 and older
Earned Income Rules And Limits For 2008 Traditional IRA Contributions
You must have earned income to make an IRA contribution.
- If you have enough earned income, you may also make an IRA contribution for a non-working spouse.
- If you have too much earned income, the contribution for your non-working spouse may not be deductible. (For 2008, the deduction is phased out between $159,000 and $169,000 of adjusted gross income for married filing jointly)
2008 Traditional IRA Contribution Rules And Limits When You Also Have A Company Sponsored Retirement Plan
If you participate in a company sponsored retirement plan, your IRA contribution may not be deductible.
- For 2008 the deduction is phased out between $53,000 and $63,000 of adjusted gross income for single filers.
- For 2008 the deduction is phased out between $85,000 and $105,000 of adjusted gross income for married filing jointly.
Non Deductible IRA Contributions
Even if your IRA contribution is not deductible you can still make the contribution. It is called a non-deductible IRA contribution, and the funds inside will grow tax deferred, until such time as you take a withdrawal.
See 2008 ROTH IRA Rules for earned income limits for 2008 ROTH IRA contributions.
