How much can be contributed to a traditional IRA?
100% of earned income up to $4,000 can be contributed to your IRAs each year. This is the annual combined limit for contributions to both traditional IRAs and Roth IRAs. Further, individuals 50 and over can make additional catch-up contributions of $1,000. Can a retiree who has no earned income, but receives Social Security benefits, fund a traditional IRA? No. Social Security is not considered earned income. What is a spousal IRA contribution? A spousal IRA contribution is a way in which a working spouse can fund an IRA for a non-working spouse. The couple must be married and file a joint return. 100% of earned income up to $8,000 can be contributed to the couple’s IRAs each year, but no more than $4,000 can go into either spouse’s IRA.
