For taxpayers age 49 and under, the maximum Roth IRA contribution for tax years 2014 and 2015 is the lesser of the taxpayer’s taxable compensation for the year or $5,500, according to the IRS. This amount is $6,500 for taxpayers aged 50 or over on or before December 31st.Continue Reading
This figure is the maximum that can be contributed to all IRAs in the taxpayer’s retirement portfolio. This includes both Roth IRAs and traditional IRAs. Roth IRA contributions can be made at any age and up to the maximum contribution limit as long as the taxpayer has a taxable income and a modified adjusted gross income below the limits established for the tax year. For tax year 2014, the modified AGI of the contributor or contributors must be less than $181,000 for married taxpayers filing a joint return or $114,000 for single taxpayers. Those with more income can contribute a reduced amount to their Roth IRAs.
Contributions for the calendar year must be made by the filing deadline for the tax return for the particular tax year. For instance, all 2014 contributions to both traditional and Roth IRAs must be made by April 15, 2015. Money can be withdrawn at any time, and no minimum required distributions are required for Roth IRAs for original account owners, notes the IRS.Learn more about Financial Planning