• Text size:
    A
    A
    A
  • Print
  • Email
    Email this page
    Close
    • Cancel & close

    Your email address is required to let the recipient know who has sent this email. Your email address and the email address(es) you provide will not be used for any purpose other than sending this page on your behalf.

  • Share:
  • Share on Twitter
  • Share on Linkedin
  • Share on Facebook

IRA limits & eligibility

Traditional and Roth IRA contribution limits for individuals

Contribution limits are subject to annual cost of living adjustments as set forth in 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
2011 The lesser of earned income or $5,000 $1,000
2012 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 the contribution limit for both spouses. For example, in 2012, 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 2011 through April 17, 2012.

Eligibility to contribute
2011

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 $107,000 for a full contribution or $107,000 - 122,000 for a partial contribution
  • Married filing jointly: MAGI less than $169,000 for a full contribution or $169,000 - 179,000 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
2012

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 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 $110,000 for a full contribution or $110,000 - $125,000 for a partial contribution
  • Married filing jointly: MAGI less than $173,000 for a full contribution or $173,000 - $183,000 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).

2011 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 $56,000

Partial deduction:
MAGI of $56,000 – 66,000

No income limit for full deduction

Married filing jointly

Full deduction:
MAGI less than $90,000

Partial deduction:
MAGI of $90,000 - 110,000

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 $169,000

Partial deduction:
MAGI of $169,000
- 179,000

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
2012 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 $58,000

Partial deduction:
MAGI of $58,000 - $68,000

 No income limit for full deduction
Married filing jointly

Full deduction:
MAGI less than $92,000

Partial deduction:
MAGI of $92,000 - $112,000

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

Spouse participates in a retirement plan at work
Full deduction:
MAGI less than $173,000

Partial deduction:
MAGI of $173,000
- $183,000
Married filing separately Partial deduction:
MAGI $0 - $10,000

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

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.

Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC. Some products and services may not be available in all jurisdictions or to all clients.

Related information
Ask them.
LinkedIn