What are the contribution limits for Traditional IRAs?
Qualified Traditional IRA owners are permitted to contribute $5,000 in tax years 2008 and 2009. Additional catch-up contributions can be made by qualified individuals over the age of fifty. May I contribute the full amount to a Traditional IRA? Individuals eligible to contribute to a Traditional IRA may contribute the maximum annual amount or 100% of their earned compensation and alimony; whichever is less. Is my Traditional IRA contribution tax deductible? If you and your spouse are not covered by an employer sponsored retirement plan, you will receive a full deduction regardless of your income. Participation by you or your spouse in an employer sponsored retirement plan will affect your ability to deduct your Traditional IRA contribution. Contact your tax / financial advisor for information pertaining to your personal situation. Are distributions from a Traditional IRA free? Distributions attributable to deductible contributions and earnings will generally be taxed as income in the t
