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As of 2011 how much money can a person under the age 50 contribute to a traditional IRA?
$5,000
At what age can a person no longer contribute to a traditional IRA?
There is no age limit for contributing to a traditional IRA, as long as the individual has earned income. However, individuals must start taking required minimum distributions (RMDs) from their traditional IRA starting at age 72 (previously 70 ½).
Can you contribute to a SEP IRA if you are over 71?
No, you cannot contribute to a SEP IRA if you are over 71, even if you are still working. However, you can still contribute to a traditional IRA if you have earned income.
Can you contribute to an IRA or 401k after age 70.5?
You can contribute to a Roth IRA after age 70.5 as long as you have earned income, but you cannot contribute to a traditional IRA after that age. For a 401(k) plan, it depends on the rules of the specific plan, but typically you can continue to contribute to it past age 70.5 as long as you are still working and the plan allows for it.
Can a 71 year old contribute to an IRA?
Yes, a 71-year-old can contribute to a traditional IRA as long as they have earned income. They are also eligible to contribute to a Roth IRA regardless of age if they meet income requirements.
What age can a person no longer contribute to traditional IRA?
[70] million years old
How much money can I contribute to a Roth IRA?
As of right now you can contribute up to $5500 each year to a Roth IRA. If you are over 50 years of age, you can contribute an additional $1000 for a total annual contribution of $6500.
As of 2011 how much money can a person under the age 50 contribute to a traditional IRA?
$5,000
Can you contribute more than 5000 dollars a year into your IRA?
You can contribute as much as you want to an IRA, but you would pay an excess contribution tax on the amount over $5,000. If you are over 50 you can contribute an additional $1,500 ($6,500 total) without penalty.
Can your spouse contribute to a Roth IRA after he has retired?
No, in order to contribute to a Roth IRA, an individual must have earned income. Retirement income, such as pensions or Social Security benefits, does not count as earned income for the purposes of contributing to a Roth IRA. Therefore, if your spouse has retired and is no longer earning income from work, they would not be eligible to contribute to a Roth IRA.
Can I contribute to both a Simple IRA and a Traditional IRA?
No, you cannot contribute to both a Simple IRA and a Traditional IRA in the same year.
If you have a 401k and an IRA can you convert some of your IRA to a roth IRA and contribute to your IRA?
Yes.as long as you do not contribute more than your annual limit.
Is it possible for me to contribute to both a Simple IRA and a Traditional IRA in the same year?
No, you cannot contribute to both a Simple IRA and a Traditional IRA in the same year. You must choose one type of IRA to contribute to for that tax year.
Can I contribute post-tax money to an IRA?
Yes, you can contribute post-tax money to a Roth IRA, but not to a traditional IRA.
At what age can a person no longer contribute to a traditional IRA?
There is no age limit for contributing to a traditional IRA, as long as the individual has earned income. However, individuals must start taking required minimum distributions (RMDs) from their traditional IRA starting at age 72 (previously 70 ½).
Roth IRA Basic Rules?
A Roth IRA has the same rules as a traditional IRA with a few notable exceptions. Contributions to a Roth IRA are not tax-deductible as contributions to a traditional IRA. A person can only contribute up to a certain amount to the IRA each year and there is a maximum income limit. If a person earns more than the limit, she can contribute to a traditional IRA but not the RothContribution LimitsIf a person has an adjusted gross income that is less than $122,000 in 2011, she can contribute up to $5,000 to a Roth IRA. People who are married and file jointly can earn up to $177,000 in 2011 and still contribute to a Roth IRA. She can only contribute money she earns during the year. For example, if her income is $3,500, she can only contribute $3,500 to her IRA. If a person is over age 50, she contribute an extra $1,000 to her IRA each year, for a total of $6,000.The $5,000 limit is the total combined for all the IRAs a person may have. For example, if someone has a Roth and traditional IRA, she may only contribute up to $5,000 total to the accounts, not $5,000 to each account. Married couples can contribute $5,000 each.TaxesUnlike a traditional IRA, the contributions to a Roth IRA are no tax-deductible in the year they are contributed. This has several benefits. When it is time to withdraw the money from a traditional IRA, a person will have to pay tax on the earnings and on the original amount. When it is time to take a withdrawal from a Roth IRA, no taxes are due on the money, for both original contributions and any earnings. Not owing taxes in retirement is beneficial if a person expects that they will be in a higher tax bracket during their retirement years.Other RulesPeople usually need to wait until they are age 59 1/2 before they can withdraw from a Roth IRA. There are a number of exceptions to this rule. For example, a person can use the money in an IRA to purchase their first home. Unlike traditional IRAs, a person can leave the money in the account indefinitely and does not need to begin taking distributions at age 70 1/2.
Can you contribute to a Traditional IRA and a Roth IRA?
Yes, but combined contribution limits apply. For 2008 the maximum contribution amount is $5,000 for individuals under 50 years of age and $6,000 for those over 50. If you are under 50 and contribute $2,000 to your Roth IRA then you can only contribute $3,000 to your Traditional IRA. For a traditional IRA, you no longer can contribute after the age of 70 1/2 (RMD checks in). For Roth, you can contribute forever since no RMD are taken from this type of IRA account.
