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IRA Contribution Calculator

Individual retirement accounts (IRAs) have contribution limits that can vary depending on the year, income, age, filing status, and participation in other retirement plans.

Use the IRA contribution calculator to determine your contribution limits for traditional IRAs and Roth IRAs for tax year 2012.

Start Contributing at a Young Age

You don't get back the years of missed contributions.

Take Advantage of Tax Benefits

Traditional IRA contributions are tax-deductible. Earnings in Roth IRAs are tax-free.

Contribute by April 15, 2013

All IRA contributions for 2012 are due by tax day.

The maximum contribution to an IRA for 2012 is $5,000 (the catch-up contribution limit for those ages 50 and older is $6,000). As your income reaches certain phase-out levels, the amount you may contribute to an IRA will decrease until you become totally ineligible to contribute.

Individuals may have a combination of traditional IRAs and Roth IRAs but total contributions across the two types of IRAs are subject to the limits. For example, you could contribute $2,500 to a traditional IRA and $2,500 to a Roth IRA - not $5,000 in each IRA.

What Does it Mean?

Traditional IRA

A traditional IRA allows individuals to deduct contributions up to the annual limits but earnings are taxed at withdrawal. Withdrawals must begin by age 70½ or the IRS will impose penalties. A Traditional IRA is recommended for individuals in a high income tax bracket.

Roth IRA

A Roth IRA does not allow individuals to deduct contributions, which are made with post-tax dollars, but earnings are tax-free upon withdrawal after age 59½. There is no requirement to begin withdrawing at a certain age. A Roth IRA is recommended for individuals who expect to face rising tax rates.

IRA contribution

Designation of funds into an individual retirement account that may offer tax benefits. IRA contribution limits may change from year to year.

 

Calculate your IRA Contribution

  • 1.

    Your modified adjusted gross income

  • 2.

    Your age as of December 31
    of this year

  • 3.

    Tax filling status

  • 4.

    Do you participate in a retirement plan at work?

  • 5.

    Does your spouse participate
    in a retirement plan at work?

 

Contribution limits:

Traditional IRA: $0

Roth IRA: $0