2008 IRA Contribution and Deduction Limits

Its a new year and its always time to think about taxes. If you dont participate in other retirement plans (like a 401k plan), you may be eligible to contribute to an IRA.

According to the IRS:

If you are under 50 years of age at the end of 2008: The maximum contribution that you can make to a traditional or Roth IRA is the smaller of $5,000 or the amount of your taxable compensation for 2008. This limit can be split between a traditional and a Roth IRA but the combined limit is $5,000. This maximum contribution to a Roth IRA and the maximum deductible contribution to a traditional IRA may be reduced depending upon your modified adjusted gross income (AGI).

If you are 50 years of age or older before 2009: The maximum contribution that can be made to a traditional or Roth IRA is the smaller of $6,000 or the amount of your taxable compensation for 2008. This limit can be split between a traditional and a Roth IRA but the combined limit is $6,000. This maximum contribution to a Roth IRA and the maximum deductible contribution to a traditional IRA may be reduced depending upon your modified AGI.

You generally have until April 15 of the following year. Publication 590, Individual Retirement Arrangements can answer most questions. I also like this link.

For 2009 401K contribution limits click here.