What is the contribution limit if I have two Traditional IRAs or if I have both a Traditional IRA and a Roth IRA?
The contribution limit is the total amount that an individual may contribute to all IRAs, whether Traditional or Roth. For example, if you are under age 50 and have both a Traditional IRA and a Roth IRA and are eligible to contribute to your Roth, the maximum you can contribute overall is $5,000 for 2008. You can contribute the full $5,000 to either your Traditional IRA or your Roth IRA; or, you can split the $5,000 contribution between the two, perhaps $2,500 to the Traditional and $2,500 to the Roth.
The contribution limit is the total amount that an individual may contribute to all IRAs, whether Traditional or Roth. For example, if you are under age 50 and have both a Traditional IRA and a Roth IRA and are eligible to contribute to your Roth, the maximum you can contribute overall is $5,000 for 2011. You can contribute the full $5,000 to either your Traditional IRA or your Roth IRA; or, you can split the $5,000 contribution between the two, perhaps $2,500 to the Traditional and $2,500 to the Roth.
Related Questions
- Can someone in 2010 or later who does not have a traditional IRA and is ineligible to contribute to a Roth IRA make a single contribution to a traditional IRA and immediately convert it to a Roth?
- What is the contribution limit if I have two Traditional IRAs or if I have both a Traditional IRA and a Roth IRA?
- Is the Roth IRA income limit the gross or the taxable income?
