Location

Traditional IRA

Who may contribute? How much may I contribute? What are the tax advantages?

Anyone under age 70 1/2 who has income from compensation or who is filing jointly with a spouse who earns compensation.

Anyone who has received a distribution from a qualified retirement plan and decides to roll over the proceeds of the plan into an IRA.
  • $5,000 for 2010
  • For IRA holders age 50 and older, your limits increase to $6,000 for 2011
  • Cannot exceed compensation
  • Reduces contributions that may be made to Roth IRAs
  • Earnings grow tax-differed until withdrawn
  • Contributions may be tax deductible.