IRA Contribution Limits For The Present Year

There are different kinds of IRA Contribution limits that are based on the kind of IRA accounts. There are the Roth IRA limits and there are limits for traditional IRA accounts. Further, there are income limits and contribution limits.

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Here we discuss the kinds of limits that apply to the individual retirement account based on the kind of account that you have. For a long time, the IRA contribution limits were fixed at a certain limit but was revised after the government felt that this was inadequate given the changed market conditions. If you want to do prudent retirement planning, you should consider the options available for you to invest in an individual retirement account. The IRA contribution limits need to be separated for the traditional, simple and Roth IRA limits. These depend on the type of individual retirement account that a particular individual holds. Till recently, the IRA contribution limits was fixed at $2000 but recently it has been raised to $4000. And if you are reaching the age of 50 you are entitled to a catch up amount for the same. Further, the Roth IRA limits depend on your marital status. It varies if your filing status is single, married and if you are the head of a household.  There are contributions that are tax deductible and those that are not. These are according to the type of individual retirement account that you have. The feature of the Roth IRA contribution limits is that anyone can contribute to the retirement account at any age provided you fulfill the conditions for the IRA contribution limits.

These are set periodically by the government and reviewed for each year. For the latest in IRA contribution limits, it is suggested that the same be obtained from your financial planner or by referring to a website that deals with the limits on your individual retirement account. There are different kinds of contributions that vary according to the standard and catch up contribution limits. All in all, your financial planning must be done in such a way that you leave enough balance in your individual retirement account for your old age. The balance in your IRA account also depends on the kind of plan that your employer has in place for you and the filing status at the time of your claim. You can refer to the IRS website for more details on the same.