The IRA contribution limits will stay the identical in 2011 as they have been over the past three years. The Roth IRA contribution limits and also the limits of traditional Individual Retirement Accounts (IRAs) have not changed since 2008. Investors younger than 50 can make contributions up to $5,000 annually, and married couples may contribute a maximum of $10,000 in a Roth IRA. Investors who are over the age of fifty can make additional catch up payments of an additional $1,000 each year for a total investment of $6,000 per year for each individual.
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You may make your 2010 Roth and Traditional IRA contributions until April 15th, 2011. Many people fail to remember that they may keep making contributions to their IRAs up until April. Finishing the maximum Roth IRA contribution up to the limit is a great way of spending any kind of extra money which you have acquired at the end of the year or beginning of the new year. Finishing off your Roth IRA contribution limits following the year is over can be a excellent use of more income, a year end bonus, or even your earnings tax refund. As for your 2011 Roth IRA contribution limits, you can start investing in a Roth or Traditional IRA right away on January 1st, 2011 with the next deadline of April 15th, 2012.
Maxing Out Your Roth IRA Contribution Limits Builds Wealth
There are very few things in the investment world which are as powerful as the impact of a Roth IRA’s compounding interest and tax free investing gains. A Roth IRA’s capital gains, dividends, and interest attained are withdrawn in retirement tax free. The power of using after tax dollars to construct your nest egg is incredible. For example, a person investing $5,000 per year each year for an complete career earning an 8% annual rate of return will develop to approximately $1.6 million from the age of 22 until retirement at 65 years-old.
While the Roth IRA contribution limits have remained unchanged for several years, that does not eliminate the significance of continued investment for retired life.