Weird. Earlier this fall, I wrote up an article about 2008 IRA contribution limits, but I apparently never got around to creating a standalone post for 2007 IRA contribution limits. Given that you have until Tax Day to make IRA contributions for the previous year, this is still timely information, so here goes…
For tax year 2007, the IRA contribution limit is $4,000 for individuals under age 50. If you’re 50 or older, you’re eligible for “catchup contributions,” and thus the limits increases to $5,000. Note that these limits apply to both traditional and Roth IRAs, as well as to things like individual contributions to SEP-IRAs. Note that Roth contributions are subject to income limits.
For a look at next year’s IRA contribution limits (they’re higher!), check out my article on 2008 IRA contribution limits. And if you’re not sure whether or not you can afford to contribute to an IRA, be sure to check out my alternative strategy for funding your IRA.
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