How much money can I contribute to an IRA?
- 2006 & 2007 Contribution Limit: $4,000
- 2008 Contribution Limit: $5,000
- Permanent Catch-up Contribution Limit: $1,000 (age 50 and up)
How much money can I contribute to my retirement plan?
- Permanent Contribution Limit: $15,500
- Permanent Catch-up Contribution Limit: $5,000 (age 50 and up)
What is a "Catch-Up Contribution"?
Beginning in 2002, individuals age 50 and over, who maximize contributions to their IRA's, may make catch-up contributions of $500. This will increase to $1,000 in 2006.
Individuals age 50 and over, who maximize contributions to their retirement plan, may make catch-up contributions of $1,000 in 2002. This increases by $1,000 a year to 2006 when the catch-up contribution will be $5,000 a year.
