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Traditional IRA and Roth IRA Contribution Limits for 2009, 2008 - 2002

The Federal government imposes certain annual contribution limits (the maximum dollar amount you are allowed to deposit) to IRA accounts. These limits apply to Roth IRAs, traditional IRAs, or a combination of the two.

Below you will find the contribution limits to your IRA account for the years 2002, 2003, 2004, 2005, 2006, 2007, 2008 and 2009. Starting in 2009, the IRA contribution limit raises in $500 increments based on inflation.

IRA Contribution Limits
Year AGE 49 & BELOW AGE 50 & ABOVE
2002 $3,000 $3,500
2003 $3,000 $3,500
2004 $3,000 $3,500
2005 $4,000 $4,500
2006 $4,000 $5,000
2007 $4,000 $5,000
2008 $5,000 $6,000
2009 $5,000 $6,000

The maximum dollar amount you are allowed to contribute can be split up between traditional and Roth IRAs but you cannot deposit more than the maximum allowed amount into your Roth and traditional IRA combined (for example, if you are 45 and have contributed $3,000 to your Roth IRA account in 2008 so far, you can either deposit $2,000 more into your Roth IRA or $2,000 into your traditional IRA).

If you don't contribute the maximum allowed amount during a fiscal year, in the next year you cannot deposit the unused amount from the previous year (for example, if you are 45 and have contributed $3,000 to your account in 2007, in 2008 you cannot deposit the rest $1,000 from 2007 over the $5,000 limit).

You are not obliged to make one single deposit each year. You can choose to divide the maximum amount into 12 equal shares and deposit them into your IRA each month (for example, if you are 45 in 2008 you can deposit $416.67 each month into your IRA).

Our advice: Remember, investing through an IRA gives you tax advantages, so try to make the maximum contribution each year.

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