The Ins and Outs of IRAs: Income and Contribution Limits
Check your eligibility and see how much you can contribute to an account.
For a vehicle that was set up to be a simple way for Americans to save for retirement, the IRA sure has a lot of complex nooks and crannies. First, there are three key types--traditional deductible IRA, traditional nondeductible IRA, and Roth IRA. There's also the fact that you can manipulate your IRA in various ways, rolling over, converting, and recharacterizing IRA assets. Finally, there are rules governing when and how you can withdraw your assets.
But the first thing you need to know about IRAs is whether--and how much--you can contribute to one. The rules regarding eligibility and contribution amounts don't change a lot from year to year, but they change enough that you have to keep an eye on them. Here's what you need to know. (Morningstar's IRA Calculator also gives you a quick view of your eligibility.)