Roth IRA Contribution Limits 2011

The Roth IRA contribution limits 2011 determine the maximum you can invest for retirement using individual retirement accounts. The traditional IRA and Roth IRA Contribution Limits 2011, plus the 2011 standard IRA deductibility limitations and the 2011 Roth IRA income limits, are all important factors.

Roth IRA Contribution Limits 2011

The Roth IRA contribution limits 2011 are unchanged from 2010. Beginning in 2008, the most you may contribute to a standard IRA per year is $5,000. But, if you will be 50 years of age or older by the end of the year, you can contribute an extra $1,000, for a $6,000 total IRA contribution limit. Keep in mind that you and/or your spouse are required to have earned income at least as great as the amount you contribute.

These restrictions apply to both regular and Roth IRAs. Even though you may be eligible to contribute to both plans, your combined contribution to both accounts may not exceed your limit above ($5,000 or $6,000).

Deductible Roth IRA Contribution Limits 2011

Although there is no maximum income cap for contributing to a standard IRA, there are income capst to deducting regular IRA contributions, which will be different based on marital status, income, and workplace retirement (e.g., 401(k), 403(b) plan eligibility).

Roth IRA Income Limits 2011

Unlike standard IRA contributions, not every worker can contribute to a Roth IRA. Based on one’s marital status and income, some upper earners are not eligible to contribute to Roth IRAs. However, since these plans are so beneficial to your strategy for retirement, be sure to understand the limits every year before deciding you don’t qualify.

2011 Roth Conversion Income Limitations

Even if you earn too much money for a direct Roth IRA contribution, you might have access to a Roth IRA via the backdoor. The opportunity to convert a regular IRA to a Roth IRA became accessible to all taxpayers regardless of income on the 1st of January, 2010. Previously, a conversion was only accessible to people who had a modified adjusted gross income of less than $100,000.

For more information, please visit the Roth IRA Contribution Limits 2011 info page.