Contributions
IRAs are available to anyone who receives taxable compensation during the year. For IRA contribution purposes, compensation includes: wages, salaries, fees, tips, bonuses, commissions, taxable alimony and separate maintenance payments.
Husbands and wives are eligible to each have an IRA, even if one spouse is not working. One spouse’s annual contribution is limited to the lesser of total taxable compensation or to the yearly amount shown in the following table. Participants age 50 or older may make an additional “catch-up”
IRA contribution in the amounts indicated in the table.
Traditional and Roth IRA - Annual IRA Contribution Limits
| Year |
Normal Contribution |
“Catch-Up” Amount |
2006 |
$4,000 |
$1,000 |
2007 |
$4,000 |
$1,000 |
2008 |
$5,000 |
$1,000 |
2009 |
Indexed* |
$1,000 |
*Normal IRA contribution limits will increase annually by $500 whenever cumulative inflation exceeds the next-higher $500 increment.
There are no minimum or required IRA contribution amounts, and all earnings on the amounts in a Traditional IRA are not taxed until withdrawn.
In the case of Roth IRAs, withdrawals may be made on a tax-free basis provided certain conditions are met. See
Distributions from your IRA for additional information.
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