Comments on: 2009 Traditional and Roth IRA Contribution Limits

By: Patrick

Patrick — Tue, 17 Nov 2009 20:47:33 +0000

Tara, You must withdraw the excess contributions, plus any earnings, by the due date of your tax return or pay a 6% excise tax on the amount of the over contribution for each year it remains in your IRA.

You can contribute up to April 15, 2010.

By: Aunt Tara

Aunt Tara — Tue, 17 Nov 2009 20:22:28 +0000

I contribute to a ROTH on an automatic monthly basis. $300/mo = $3600/year. I want to max it out, but I’m not sure if my MAGI will be under $105k this year. What happens if it’s over & I already have to much in the ROTH. eg: MAGI=115K, limit would be around $1666. How is that fixed in my ROTH that currently has $3600 in it (or more). Also, when’s the last date I can contribute to my 2009 Roth? Is it before 4/15/2010 or has to be in the calendar year of 2009?

By: Patrick

Patrick — Thu, 05 Nov 2009 13:04:32 +0000

You may be allowed to contribute for your wife’s IRA with what is called a spousal contribution, provided you meet income requirements. However, I am not sure how or if her ssdi affects that. I recommend contacting a financial planner or the IRS for more information – they should be able to give you more complete information based on your situatuon.

By: Curious

Curious — Thu, 05 Nov 2009 07:04:47 +0000

My wife is on ssdi – - i started a roth ira for her in her name – - i arranged it so that our bank account is directly depositing twenty-five dollars a week into her Roth IRA account. It is a joint account. My paycheck goes direct to our bank account. I haven’t gotten her into trouble have i? Is she allowed to have a roth ira account if i’m the one putting in the money from my paycheck?

By: Patrick

Patrick — Thu, 22 Oct 2009 02:35:49 +0000

Ramon, Rollover IRAs have the same tax benefits as other IRAs, but they don’t count against your maximum contribution for the year. So you can contribute $5,000 to an IRA this year and still roll money into an IRA from a 401k, even if it is above the $5,000 limit.

By: Ramon

Ramon — Wed, 21 Oct 2009 22:49:21 +0000

Due to termination of employment I rolled the money from the 401(K) established by my former employer into a Traditional Roth account. This amount exceeded $5k. Are the additional funds over the max limit just not beneficial as far as taxes? Thanks.

By: Patrick

Patrick — Mon, 05 Oct 2009 02:52:45 +0000

Kel, It is $5k for yourself and $5k for your spouse for a total of $10k as long as you meet income requirements.

By: Kel

Kel — Mon, 05 Oct 2009 02:47:45 +0000

If I and my spouse can contrbute the max to IRA, then does it mean 5k for myself and another 5k for my spouse or total 5k for a couple?

Thanks,

By: Patrick

Patrick — Thu, 01 Oct 2009 03:28:49 +0000

TaxPayer, There are some circumstances under which you can withdraw money from an IRA without paying penalties, but I recommend speaking with a tax specialist to see if you qualify or for more information. Yes, it is possible to have both an IRA and a 401k. You can read more about that in this article: How Many Retirement Accounts Can You Have?. The maximum you can contribute (under age 50) is $5,000 for an IRA, and $16,500 for a 401k. If you are over age 50 the limits are $6,000 and $22,000 respectively. Best of luck!

By: Taxpayer

Taxpayer — Wed, 30 Sep 2009 18:47:54 +0000

I have a traditional IRA account; I already reached the max. ($5000). I contributed the money in this year (2009 tax year) and I did not claim any tax deduction on it. Can I withdraw the money without penalty?

On the other hand, my company offered me 401K plan, is it possible to have two accounts, both the Traditional IRA and 401K plan? If yes, what is the maximum limit that I can contribute in each account?

Thanks,