With just a few days left before the New Year, I thought I’d put together a quick post on IRA contribution limits for 2012. As a reminder, contribution limits have been indexed to inflation since 2008, and can increase in $500 increments (as necessary). As you can see from the table below, however, nothing has changed in recent years.
|Year||Under Age 50||Age 50+|
|2002-2004||$3, 000/year||$3, 500/year|
|2005||$4, 000/year||$4, 500/year|
|2006-2007||$4, 000/year||$5, 000/year|
|2008||$5, 000/year||$6, 000/year|
|2009||$5, 000/year||$6, 000/year|
|2010||$5, 000/year||$6, 000/year|
|2011||$5, 000/year||$6, 000/year|
|2012||$5, 000/year||$6, 000/year|
A few notes…
First, note that this limit is a combined limit for traditional and Roth contributions. Thus, while you can contribute to both in the same year, the total contribution cannot exceed the $5, 000 (or $6, 000) limit.
Second, your traditional IRA contributions may be tax deductible, depending on whether or not you’re covered by a retirement plan at work, and how much money you make. Details can be found here and here.
Finally, remember that you can make contributions for 2011 all the way up to April 17th, 2012 (the due date for filing 2011 tax returns). Thus, if you still haven’t gotten around to it making your 2011 contributions, you still have time.