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How much can I contribute to an IRA? I just turned 50 years old.

Feb 10, 2014 by Jim in  |  Flag
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3 votes

The other thing to keep in mind is you must make the contribution by 4/15/2014 and designate it as a 2013 contribution. Doing it this way will allow you to contribute again in 2014.

Comment   |  Flag   |  Feb 10, 2014 from Medina, OH

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Retirement planning is vital for everyone.

Typically, The contribution limit for 2013 and 2014 into a Traditional IRA (Individual Retirement Account) is $5,500, OR $6,500 if you’re age 50 or older. Your Roth IRA contributions may also be limited based on your filing status and income.

If you are self-employed you may be eligible for more contributions to a SEP-IRA, SIMPLE IRA or SARSEP IRA.

With regard to tax planning it is important to know that If neither you nor your spouse is covered by a retirement plan at work, your deduction IS allowed in full. For contributions to a Traditional IRA, the amount you can deduct may be limited if you or your spouse is covered by a retirement plan at work and your income exceeds certain levels. Roth IRA contributions are NOT deductible.

Comment   |  Flag   |  Feb 10, 2014 from Santa Monica, CA

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It depends on what you mean by "just turned 50".

You can still contribute to an IRA for 2013. So, if you turned 50 before December 31st, you can contribute $6,500 ($5,500 + $1,000 catch-up) for a 2013 IRA. If you didn't turn 50 before the end of the year, your contribution for 2013 would be limited to $5,500.

OR...

If you are contributing for 2014 you can contribute $6,500 (same math).

The amount may go up in the future depending on inflation.

Comment   |  Flag   |  Feb 10, 2014 from Alexandria, VA

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