ROTH and IRA Contribution Limits

If in 2010 you’re under 50, your maximum contribution to a traditional IRA or ROTH can be the smaller of $5,000 ($6,000 in 2011) or the amount of your taxable compensation. This limit can be split between a traditional and Roth IRA. The maximum contribution may be reduced depending upon your modified adjusted gross income (AGI). If you are over 50, you may add $1,000 to these figures as a “catch up.”

Contribution limits are more complex when you’re in a 401(k) or Simple IRA environment.  In an employer’s 401(k) program, you’re allowed a $16,500 contribution ($22,000 if over 50).  See limitations below:

PLAN            Limits          If  Over 50      Max Income

401k               $16,500          $22,000          $245,000

Simple           $11,500          $14,000          $245,000

403b               $16,500          $22,000          $245,000