IRA

What are the current contribution limits for an IRA?
The contribution limits and deadlines for 2009 and 2010 are below:
    • Tax Year 2009: $5,000 by 4/15/2010
    • Tax Year 2010: $5,000 by 4/15/2011
Age 50+ can add $1,000 per year as a "catch-up" contribution.
Your modified adjusted gross income (AGI) could affect if and how much you can contribute to a Roth IRA.

What is adjusted gross income (AGI)?
Your adjusted gross income (AGI) is what the Internal Revenue Service (IRS) uses to figure out how much you owe in income taxes. For Traditional IRAs, your modified adjusted gross income determines how much of your contributions to the IRA can be deducted from your taxes. For Roth IRAs, your modified adjusted gross income determines if you can contribute at all, and if so, how much.

Can I have more than one IRA?
The answer is yes (as long as you meet eligibility rules for contributing to an IRA):
    • You can have both a Traditional IRA and a Roth IRA
    • You can have IRA accounts at more than one financial institution
The contribution limits for your IRAs will apply across all of your IRA accounts at all financial institutions.

Can I contribute to my company’s 401(k) plan and to my Individual Retirement Account?
You can contribute to both a 401(k) plan and an Individual Retirement Account -- the question is whether your IRA contribution is tax deductible. Please refer to the IRS Publication 590 Individual Retirement Arrangements (IRAs) for more information.

Can I open a joint IRA account with my spouse?
IRAs are individual accounts, so you can't open a joint IRA with your spouse. However, you may be able to open and make contributions to a separate IRA for your spouse (sometimes called a spousal IRA).

A spousal IRA is just a Traditional or Roth IRA that is opened and funded by an individual for his or her spouse. Typically, spousal IRAs are opened when the spouse has little or no income. The contribution limits and eligibility requirements are the same as a regular IRA. limits and eligibility requirements are the same as a regular IRA.