Roth IRA and Traditional IRA?

[ScAndal]

I have found tons of information on these retirement funds online and the maximums and limitations of each, however I have yet to see if you can max out both the Roth and Traditional IRA in the same year?

Anyone know?

ScAndal

 

[gopunk]

you can but if you have both, they share the limit. that is, you can only put 3k in to your iras, combined.

 

[ScAndal]

gopunk,
OK man none of the sites said that. Thanks for the info. I also assume its only 3K per household, not 3k for me and 3k for my wife?

ScAndal

 

[gopunk]

Originally posted by: ScAndal
gopunk,
OK man none of the sites said that. Thanks for the info. I also assume its only 3K per household, not 3k for me and 3k for my wife?

ScAndal

not sure, about that... i'll let someone else answer that.

also, there are other ira's like educational... the limit for those is *not* shared with traditional and roth.

 

[Orsorum]

The maximum contribution if you hold both is $3000 (soon to be $4000 in a few years, then $5000) - this means that you can also choose when and how to take deductions on contributions, if you choose to, by contributing to either your Roth or your traditional, or half and half. Totally up to you. The normal rules about eligibility concerning MAGI apply.

You and your spouse can contribute a maximum of $6000 (then $8000 and $10,000 when the time comes) a year to separate IRAs.