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IRA limits & eligibility

Traditional and Roth IRA contribution limits for individuals

Contribution limits increased in 2002 and the provisions regarding how the limits will increase were made permanent with the Pension Protection Act of 2006. If you're over age 50, you may qualify for an additional catch-up contribution.

Year Individual contribution limit Catch-up for those 50 or older
2008 The lesser of earned income or $5,000 $1,000
2009 The lesser of earned income or $5,000 $1,000
Contribution limits for married couples

The contribution limits apply to each individual, so married couples may be able to contribute up to two times the above limits in each plan year. For example, in 2008, a married couple, both of whom are over age 50, may contribute a total of $12,000 ($6,000 each, if there is enough earned income to support this level of contribution).
NOTE: You may continue to fund your IRA for 2009 through April 15, 2010.

Eligibility to contribute

2008

Traditional IRA
  • You (and/or your spouse if applicable) have earned income of at least the amount of the total contributions.
  • You (or your spouse, if your spouse's IRA) are under age 70 1/2 at the end of the year that the contributions are made for.

Roth IRA
  • You (and/or your spouse if applicable) have earned income of at least the amount of total contributions.
  • No age limit

Whether or not you can make a full contribution depends on your tax filing status and modified adjusted gross income (MAGI):

  • Single: MAGI less than $101,000 for a full contribution or $101,000 - 116,000 for a partial contribution
  • Married filing jointly: MAGI less than $159,000 for a full contribution or $159,000 - 169,000 for a partial contribution
  • Married filing separately: MAGI $0 - 10,000 for a partial contribution; MAGI greater than $10,000, a contribution is not allowed
2009

Traditional IRA
  • You (and/or your spouse if applicable) have earned income of at least the amount of the total contributions.
  • You (or your spouse, if your spouse's IRA) are under age 70 1/2 at the end of the year that the contributions are made for.

Roth IRA
  • You (and/or your spouse if applicable) have earned income of at least the amount of total contributions.
  • No age limit

Whether or not you can make a full contribution depends on your tax filing status and modified adjusted gross income (MAGI):

  • Single: MAGI less than $105,000 for a full contribution or $105,000 - 120,000 for a partial contribution
  • Married filing jointly: MAGI less than $166,000 for a full contribution or $166,000 - 176,000 for a partial contribution
  • Married filing separately: MAGI $0 - 10,000 for a partial contribution; MAGI greater than $10,000, a contribution is not allowed

Tax deductibility of Traditional IRA contributions

You may or may not be able to claim a deduction of your contributions to a Traditional IRA depending on whether you or your spouse are covered by an employer-sponsored retirement plan, your tax filing status and your modified adjusted gross income (MAGI).

2008 tax filing status IRA owner participates in a retirement plan at work IRA owner does not participate in a retirement plan at work

Single

Full deduction:
MAGI less than $53,000

Partial deduction:
MAGI of $53,000 – 63,000

No income limit for full deduction

Married filing jointly

Full deduction:
MAGI less than $85,000

Partial deduction:
MAGI of $85,000 - 105,000

Spouse does not participate in a retirement plan at work:
No income limit for full deduction

Spouse participates in a retirement plan at work
Full deduction:
MAGI less than $159,000

Partial deduction:
MAGI of $159,000
- 169,000

Married filing separately

Partial deduction:
MAGI $0 - 10,000

Spouse does not participate in a plan at work:
No income limit for full deduction

Spouse participates in a plan at work
Partial deduction:
MAGI of $0 - 10,000
2009 tax filing status IRA owner participates in a retirement plan at work IRA owner does not participate in a retirement plan at work

Single

Full deduction:
MAGI less than $55,000

Partial deduction:
MAGI of $55,000 – 65,000

No income limit for full deduction

Married filing jointly

Full deduction:
MAGI less than $89,000

Partial deduction:
MAGI of $89,000 - 109,000

Spouse does not participate in a retirement plan at work:
No income limit for full deduction

Spouse participates in a retirement plan at work
Full deduction:
MAGI less than $166,000

Partial deduction:
MAGI of $166,000
- 176,000

Married filing separately

Partial deduction:
MAGI $0 - 10,000

Spouse does not participate in a retirement plan at work:
No income limit for full deduction

Spouse participates in a plan at work:
Partial deduction:
MAGI $0 - 10,000

Ameriprise Financial and its representatives or affiliates do not provide tax or legal advice. Consult with your tax advisor or attorney regarding specific tax/legal issues.

Financial planning services and investments offered through Ameriprise Financial Services, Inc., Member FINRA and SIPC.

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