A Guide to Individual Retirement Account Contribution
There are quite a few different things that you should be aware of when it comes to your individual retirement account. Knowing your individual retirement account limits is obviously one of the most important, but just as imperative to be aware of is the individual retirement account contribution in your case.
What this refers to is knowing how much of an individual retirement account contribution that you can make in a given period of time without being taxed on it. After all, this is one of the key benefits that is offered by this retirement saving method and so you want to make sure that you are aware of just how much of an individual retirement account contribution you can make.
Know Your Limits
There are different limits between a Traditional IRA and Roth IRA, which you need to be aware of. Just bear in mind that regardless of the type of IRA that you decide to go with, the Federal government imposes annual contribution limits. Therefore, to make sure that you are up to date with the individual retirement account contribution limits in your case, you are going to need to stay abreast of any changes that the government makes.
Depending on the year, this is what will let you know how much of an individual retirement account contribution is allowed to be made. For instance, while in the year 2005 it was $4,000 maximum for people ages 49 and below and $4,500 for people ages 50 and above, just last year in 2008 it was $5,000 for people ages 49 and below and $6,000 for people ages 50 and older.
It continues to increase each year, but either way just make sure that you pay close attention to this because you may be contributing much less than you should be. Remember that the more you contribute now, the better off you are going to be in the end of it all because the more you are going to have put away for retirement.
You want your retirement to be easy living. After all you have worked your whole life and so you want to be able to relax and spend your final days just enjoying yourself and enjoying life. Therefore you are going to need to have the funds to take care of yourself without having to worry that you are going to go broke. Save properly for retirement by getting an IRA.