Roth IRA Contribution Limits

Roth IRA Contribution Limits have been steadily increasing over the years since its inception in 1998.

In the years 1998-2001, the maximum contribution for all contributors was $2,000. In 2002-2004, it was $3,000 and $3,500 for individuals over the age 50. In the year 2005, $4,000 was allowed for people under 50 and $4,500 for individuals over 50. In 2006-2007, $4,000 was the allowable contribution and $5,000 for people over 50. The year 2008, allows $6,000 for people over 50 and $5,000 for people under the age of 50. Starting in 2009, contribution limits will increase in $500 increments based on inflation.

This is a great vehicle for saving money and should be part of everyone’s retirement portfolio. Roth IRA contribution limits will continue to increase over time and hopefully will keep pace with inflation.

Tags: , , , ,