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If you are under 50 years of age at the end of 2009: The maximum contribution that can be made to a traditional or Roth IRA is the smaller of $5,000 or the amount of your taxable compensation for 2009. This limit can be split between a traditional IRA and a Roth IRA but the combined limit is $5,000.
If you are 50 years of age or older before 2010: 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 2009. This limit can be split between a traditional IRA and a Roth IRA but the combined limit is $6,000.
The maximum deductible contribution to a traditional IRA and the maximum contribution to a Roth IRA may be reduced depending on your modified adjusted gross income.
If Your Filing Status Is...
a full deduction up to the amount of your contribution limit.
$166,000 or less
more than $166,000 but less than $176,000
a partial deduction.
$176,000 or more
less than $10,000
a partial deduction.
$10,000 or more
See Individual Retirement Arrangements (IRAs), Publication 590, for additional information.
Let me know if you need any help.
WIth any tax law it is hard to understand what they are talking about, I was looking for an answer because I have what was shown above and because of the complicated nature of the government and the tax laws, I don't understand what it is saying.
I will try to simplify...
1. the deadline for contribution into a traditional IRA for 2009 - is Apr 15, 2010. If you contribute after Jan 1, 2010 - you need specifically to mention that this is the contribution for 2009 (to avoid confusion and mistakes)
2. You and your spouse may contribute up to $5000 for 2009 each.
3. You may claim a deduction for your contribution without limitation (because neither of you covered by a plan at work)
4. If you older than 50 - you may contribute additional $1000 into a traditional IRA for 2009.
Please let me know if you need any clarification or any additional help with your tax questions.