IRA Contribution Limits for 2012 and 2013http://www.fool.com/investing/general/2013/04/03/ira-contribution-limits-for-2012-2013-and.aspx Dan Dzombak
April 3, 2013
As of this writing, we're less than two weeks away from the deadline for 2012 IRA contributions. IRAs, or Individual Retirement Arrangements, are an absolute must in saving for retirement. IRAs allow individuals to save for retirement and not pay taxes on their investments as they grow, but to make proper use of them, you need to know the IRA contribution limits that apply to these tax-favored accounts.
The two basic types of IRAs
Roth IRAs also allow your investments to grow tax-free; however, contributions are never tax-deductible. The benefit of Roth IRAs is that withdrawals can be tax-free as long as you meet certain requirements.
IRA contribution limits
You can contribute to traditional IRAs only until you are 70 1/2, while there's no age limit on Roth IRA contributions as long as you have earned income.
The IRA contribution limit is whichever is less: an individual's total earned income or the amount shown in the following table.
IRA Contribution Limits for 2012 and 2013