Give yourself a better chance to save by learning the basics of IRA Contributions.
2009 IRA Contribution Limit
The 2009 IRA contribution limit is the same as in 2008, which is $5,000. You can, however, contribute an extra $1,000 when you reach 50 or over by the end of the year making your total contribution limit to $6,000.
The contribution limits apply to both regular and Roth IRA. You may be eligible to contribute to both plans but it is required that your combined contribution must not exceed the above limit of $5,000 or $6,000.
Roth IRA Income Limits for 2009
Each working individual has the potential to earn an unlimited income and be eligible to contribute to a regular, but this not be the case for Roth IRA.
For example, married couples who file jointly in 2009 can contribute $5,000 to a Roth IRA if the couples modified adjusted gross income is below $166,000. It is $6,000 for people 50 and above. However, if the couples modified adjusted gross income is within the phase-out-range of $166,000 and $176,000, they can contribute an amount less than their full limit. They will not be eligible to contribute to the 2009 Roth IRA if their income exceeds $176,000. The phase-out-range for married couple in 2008 was $159,000 to $169,000.
The phase-out-range for single individuals in 2009 is $105,000 to $120,000. It was $101,000 to $116,000 in 2008.