Traditional IRA and ROTH IRA Contribution Limits
Regardless of the type of IRA you choose, the Federal government imposes
annual contribution limits. The chart below shows the maximum dollar
amount individuals are allowed to deposit into their IRA each year. After
2008, the contribution limit will raise in increments of $500 depending
upon the level of inflation.
Deposits into your IRA do not have to be made at the same time. (For
example: In the year 2008, a 35 year old woman could deposit
$416.67 into her IRA each month. At the end of the year, it would add
up to the
maximum $5,000.) Due to the tax advantages of investing through
an IRA, it is normally best to try and make the maximum annual contribution.
The use-it-or-lose-it nature of contributions makes this
all the more
important (e.g., if you deposit $3,000 in 2008, you can't
deposit $7,000 in 2009 [the $5,000 + the $2,000 you didn’t deposit the
year before].
You cannot contribute more than the total allowable amount
during any fiscal year.)
IRA Contribution Limits
| YEAR |
AGE 49 & BELOW |
AGE 50 & ABOVE |
| 2002-2004 |
$3,000 |
$3,500 |
| 2005 |
$4,000 |
$4,500 |
| 2006-2007 |
$4,000 |
$5,000 |
| 2008 |
$5,000 |
$6,000 |
Information courtesy of Dearborn Financial Services, 2005 POCKET TABLES
© 2005 by DF Institute, Inc.
Lincoln,
NE 68506 
