IRS IRA Deposit Rules

Save

Individual retirement accounts (IRAs) give taxpayers a means to accumulate tax-deferred funds that can provide income during retirement. Traditional and Roth IRAs have similar deposit rules, but some differences apply. How much you may deposit and for how long depends on the type of IRA you open.

Traditional IRA

You may make deposits to your traditional IRA until you are 70 1/2 years old, at which time you must begin to take minimum withdrawals.

Roth IRA

You are eligible to deposit funds into a Roth IRA for as long as you like as long as you do not exceed the maximum income limits set by the IRS.

Earned Income

You must have earned income equal to or greater than the amount you deposit into your individual retirement account.

Age Requirement

Until you are 50 years old, the IRS allows you to deposit up to $5,000 per year into your IRA. Once you reach 50 years of age, your maximum contribution is $6,000 per year.

Time Frame

You have until April 15 of the next year to make deposits to your IRA for the current year. You may deposit into both an IRA account and a 401(k) account during the same tax year.

Related Searches

Promoted By Zergnet

Comments

You May Also Like

Related Searches

Check It Out

4 Credit Myths That Are Absolutely False

M
Is DIY in your DNA? Become part of our maker community.
Submit Your Work!