How much money can I contribute to a conventional IRA or Roth IRA each year?
In the Video above, Scott Farnsworth, Central Florida's Tax-Free Retirement Expert answers a frequently asked question: How much money can I contribute to a conventional IRA or Roth IRA each year
"Your contribution limits are of course based on your earned income. You cannot contribute more than you have in earned income. Beyond that the limitations are based on whether you're under fifty or over fifty. If you're under fifty, the limits are fifty-five hundred. That's true for a conventional IRA or a Roth IRA. If you're over fifty, you have an additional $1,000 dollars of make up contribution that you can add. $5,500 for a conventional IRA if you're under fifty. $6,500 if you're over fifty. Now I would strongly consider making those contributions to a Roth IRA because with a Roth, although you don't get a deduction this year, all the contribution, all the earnings eventually will be tax free when you retire. That's going to be a big deal when you get to be retirement age."