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Roth IRA Contribution Limit 2010
The government imposes contribution limits on all types of IRA. The Roth IRA Contribution Limit rules can change. It is essential that you review this, at the beginning of each new financial year. This will ensure you understand the maximum dollar amount you are allowed to deposit in your IRAs for that year.
You can make single yearly deposits or add multiply monthly deposits into your IRAs until you reach your Roth IRA Contribution Limit. There is a number of tax advantages to putting your money into IRAs. It is a terrific idea to use, as the maximum deposits limits of you can each year.
The IRS have released the 2010 guidelines and the Traditional and Roth IRA contribution limit for 2010 for those under the age of 50 is $5,000 per annum. Those over the age of 50 can make additional contributions of $1,000, totaling up to $6,000. You can hold both a Roth and Traditional IRA in the same tax year, but you cannot exceed the combined contributions limits of these accounts.
If you are self-employed, you may come under different rules for Roth IRA contributions. As a result, you should check this with your financial advisor, before you start depositing any money into your accounts.
You can continue contributing to your 2010 IRA until April 15, 2011. The start date for contributions for the 2011 year will overlap this period (from 2 January 2011 onwards) so make sure if you contribute during this time you clearly designated which tax year the deposit should come under.
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