How Much Can I Put in My Roth IRA?

There is always a struggle between how much to save for the future and how much money should be kept liquid for current expenses.  It is important to learn about all of your options so that you can make an educated decision.  Remember:  every penny you save now can keep you and your family happy and safe in the future, even if your retirement is decades away.

As the law currently stands as of 2010, there are limits to how much an individual can put into their Roth IRA account. That being said, not everyone is able to save up to meet the maximum limit – it is up to you what you put in. Saving in your Roth IRA account is simply a matter of personal responsibility, and if you are up for the challenge of depositing the maximum, keep reading for the limits.

As of 2010, the law says that each individual can save up to $5000 into their Roth IRA account each year, and can let that amount accumulate and grow year to year. This is the maximum, but if you make less than $5000 each year, you can only contribute up to the same amount that you earned in that year. For example, someone who only makes $3500 a year can only contribute $3500 to the account.  Those over the age of 65, however, can deposit up to $6000 per year in the IRA.

If you are married each spouse can contribute $5000 a year, since it is on an individual basis.

Income Limits

It is also important to note that Roth IRA contribution limits can vary. For example, if you make too much money, your ability to contribute to your Roth IRA is more limited. According to the IRS, you can contribute to a Roth IRA if your income is:

• $176,000 for married filing jointly or qualifying widow(er),
• $120,000 for single, head of household, or married filing separately and you did not live with your spouse at any time during the year, or
• $110,000 for married filing separately and you lived with your spouse at any time during the year.

More Information About Roth IRA Accounts

The best way you can learn more about your Roth IRA limits and regulations is to speak to a certified financial planner, a banker or a brokerage firm. They will either have the right information on hand for you, in terms of brochures and informational packets, or they will be able to redirect you to a website or financial counselor who can help you answer your questions about Roth IRA contribution limits.