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CONTRIBUTION LIMITS FOR TRADITIONAL IRAs
Contribution Limits for Traditional IRAs
Important Deadlines
Contributions must generally be made by April 15 (or the next business day if April 15 is a weekend or a holiday) to be effective for the previous tax year.
| Traditional and Roth IRA − Max. Annual Contribution Limits |
| Less than Age 50 |
Age 50 or older |
| 2006 - 2007 |
$4,000 |
2006 - 2007 |
$5,000 |
| 2008 |
$5,000 |
2008 |
$6,000 |
| After 2008, the $5,000 limit will be indexed to inflation in $500 increments. |
Catch-up provision: The IRA catch-up contribution is not indexed to inflation. |
Deductible Limits - Single or Head of Household
| Active Participant in an Employer's Retirement Plan |
Modified Adjusted Gross Income for 2006 |
Maximum Deductible Contributions |
| Doesn't participate |
Any amount |
Fully deductible |
| Participates |
Up to $50,000 |
Fully deductible |
| Participates |
$50,001 - $59,999 |
Partially deductible |
| Participates |
$60,000 and above |
No deduction |
| Note: Amounts contributed above the deductible maximum are allowed up to the $4,000 limit ($5,000 if age 50 or older by Dec. 31) but would not be deductible for tax purposes |
Deductible Limits - Married - Joint Return
Active Participant in an Employer's Retirement Plan |
Modified Adjusted Gross Income for 2006 |
Maximum Deductible Contributions |
Neither participate |
Any amount |
Fully deductible |
You participate |
Up to $75,000 |
Fully deductible |
You participate |
$75,001 - $84,999 |
Partially deductible |
You participate |
$85,000 and above |
No deduction |
Only spouse participates |
Less than $150,000 |
Fully deductible |
Only spouse participates |
$150,001 - $159,999 |
Partially deductible |
Only spouse participates |
$160,000 and above |
No deduction |
Note: Amounts contributed above the deductible maximum are allowed up to the $4,000 limit ($5,000 if age 50 or older by Dec. 31) but would not be deductible for tax purposes. |
Deductible Limit Married
Active Participant in an Employer's Retirement Plan |
Modified Adjusted Gross Income for 2006 |
Maximum Deductible Contributions |
Neither participate |
Any amount |
Fully deductible |
You participate |
$0 - $9,999 |
Partially deductible |
You participate |
$10,000 and above |
No deduction |
Note: Amounts contributed above the deductible maximum are allowed up to the $4,000 limit ($5,000 if age 50 or older by Dec. 31) but would not be deductible for tax purposes. |
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