Jan 20

I have both a Traditional IRA and a Roth IRA. Each IRA has a maximum annual contribution of $4000. Is this maximum for each type or IRA individually, or is it a total for all IRAs?

If it is per type, then I could contribute $4000 to my Roth, and $4000 to my Traditional in the same year.

If it is total, I could contribute $4000 split between the two.

3 comments so far...

  • Faye H Said on January 20th, 2010 at 11:26 pm:

    It’s total for the year. You can put $2,000 in each or $4,000 in one.

  • R Worth Said on January 20th, 2010 at 11:40 pm:

    Yes you can split it any way you want to as long as you do not go over $4000 in aggregate.

  • Doing the Right Thing Said on January 21st, 2010 at 12:17 am:

    The way to figure out your maximum annual contribution is treat all your IRAs (traditional and Roth) as one big IRA. For 2006-2007, your maximum annual contribution is $4000. ($5000 if you age 50 and above). Last day to contribute to your IRAs for tax year 2006 is April 17, 2007.

    For 2008, it goes from $4000 to $5000. ($6000 if you are age 50 and above).

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