2010 Contribution Limits for Roth IRA
A look at the world of Roth IRA limits and more investment details about these retirement plans.
If you’re looking for the 2010 contribution limits for Roth IRA accounts, this article will address that. Each year, millions of people make regular contributions into a Roth IRA, seeking to build a nest egg that facilitates their retirement.
Due to certain rules and regulations, a certain minimum must be adhered to. As time goes by, the yearly maximums may change. Because of inflation and other factors, the contribution limits will generally rise with each year.
The 2010 contribution limits for Roth IRA accounts will vary a bit by the individual, as it depends on your income level and some other factors. Let’s take a look at the key points you’ll need to keep in mind when determining your individual Roth IRA 2010 contribution limit.
One of the determining factors in your maximum Roth IRA contribution for 2010 will be your age. Your interest rate won’t vary with your age, and this will depend on the institution that you’ve opened your Roth IRA account with.
You’ll get the maximum benefit out of your Roth IRA by depositing up to the limit provided by law every year. If your limit is $5,000, it is not possible to roll it over into the following year.
The law provides that a maximum amount must be deposited every year and this means that at the end of the year, your account will be adjusted for the next year. In other words, if your maximum due to your AGI is $5,000 and you deposit $3,000 this year, you cannot deposit $7,000 the following year to make up.
The case being made is for you to deposit as much as you can because you will benefit from it on the long run. This does mean however, that you should get into debt on that account.
The 2010 contribution limit for the Roth IRA is largely a function of the AGI or Adjusted Gross Income of the couples who own the account. We’ve provided you with a mini breakdown below that should help to clarify the details of your own situation;
- Where the adjusted Gross Income of the couple in question falls below $ 166,000, the contribution limit is placed at $5,000.
- If the couple is above fifty years of age or more, the limit is raised to $6,000.
- If the couple has an income that falls between $166,000 and $176,000, their contribution is reduced.
- A couple making an income exceeding the sum of $176,000 according to their adjusted gross income is not allowed to contribute under the Roth IRA.
- The contribution for an individual has its own limitations and this is determined by the amount the person earns according to his or her adjusted gross income. If it is between $101,000 and $116,000, the contribution reduces and continues to do so until it is phased out at $ 120,000.
Hopefully, this helps to make your 2010 contribution limits for Roth IRA accounts clear. Follow by these guidelines and do your best to make the maximum allowable contribution. This way you’ll get the maximum interest benefit over time.