Q:

What are traditional IRA income limits?

A:

Quick Answer

Traditional individual retirement account (IRA) income limits vary depending on the investors modified gross income, but the max is $6,500 for those age 50 and older, and $5,500 for investors less than age 50, as stated by the IRS. These limits can vary if the investor is covered by a retirement plan at work also.

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Full Answer

A spouse's IRA or retirement plan must also be taken into account, notes the IRS. If taxpayers are filing jointly, these factors can also affect the deduction limit and contribution limit. If someone contributes more than the max, they could face tax penalties. The tax of 6 percent will be charged as long as the excess amount remains in the account.

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