Tips to Share with your clients: Did you know you have until April 15th to contribute to your IRA (ROTH or Traditional) contribution for 2010?

Fred Solomon, from Solomon Financial Mortgage shares IRA contribution information for 2010/2011.

In speaking with my clients and friends, this topic comes up this time of year.   According to

Traditional & Roth IRA Compensation Limits
As mentioned earlier, the first contribution limit we’re going to talk about has to do with compensation.  To be eligible for a Roth IRA contribution in a given calendar year, you need some form of compensation.  But there is also an income limit for contributions.  If your adjusted gross income exceeds these limits, then you are no longer eligible to contribute to a Roth IRA.
In 2010 and 2011, the adjusted gross income limits are:
Single filers, Head of Household or Married Filing Separately (and you did not live with your spouse during the year) with modified adjusted gross income up to $105,000 ($107,000 in 2011) can make a full contribution.  Contributions are phased-out starting at $105,000 (or $107,000 in 2011) and you cannot make a contribution if your adjusted gross income is in excess of $120,000 ($122,000 in 2011).
Joint filers with modified adjusted gross income up to $167,000 ($169,000 in 2011) can make a full contribution.  Once again, this contribution is phased-out starting at $167,000 ($169,000 in 2011) and you cannot make a contribution if your adjusted gross income is in excess of $177,000 in 2010 or $179,000 in 2011.
If your tax filing status is Married Filing Separately (and you live with your spouse), then you cannot make a Roth IRA contribution if your AGI is in excess of $10,000.
Traditional & Roth IRA Contribution Limits for 2011

Traditional & Roth Contribution Table
2012$5,000 plus Inflation

Roth IRA Catch-Up Limits
In addition to the “standard” contribution limits shown above, taxpayers age 50 and over by December 31st are eligible to make a Roth IRA catch-up contribution.  Once again, the table below outlines these catch-up contributions for the last several years as well as those for the next couple of years:
Roth Catch-Up Contributions Table
2012$1,000 plus Inflation

Roth IRA Contribution Example
Keep in mind that these catch-up contributions are in addition to the “normal” Roth IRA contribution limit.  For example, in 2010 and 2011 you can make a contribution of $5,000.  But if your age 50 and over by year’s end, you can make an additional catch up contribution of $1,000, making your total contribution $6,000.

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Contact Information
phone: 949-220-0240 Solomon Financial Mortgage & Real Estate Network


About fredsolomon
FRED SOLOMON has been speaking to audiences for over 20 years helping people improve their financial decisions, real estate strategies and overall lives.. Many ordinary people have learned from Fred’s strategies and success tips. Fred Solomon is a motivational speaker, spokesperson and financial coach on real estate and mortgage trends, how to make money in this economy, helping others or profiting in foreclosures and short sales. Fred Solomon is featured on the investment radio talk show, “The Solomon Free Money Hour” which has aired for over three and a half years of broadcasts on CBS Radio stations and Angels AM 830 News Radio. His fun, upbeat, positive and educational radio talk show also streams live anywhere in the world ( Fred offers in-depth knowledge on finance and real estate investors, realtors, CPA’s and anyone interested in learning proper home loan and real estate strategies and trends. Fred grew up in the San Fernando Valley, graduated from San Diego State in 1990 with a BS in Finance and emphasis in Real Estate and immediately became a broker at the age of 22. Fred has been a licensed CA Dept of Real Estate Broker for 19 years. His experience includes residential 1031 exchanges, commercial real estate, multi-family apartments, representing buyers and sellers for the first time investor to the seasoned investor. Fred and his wife and co-founder, Lisa Solomon are co-hosts of The Solomon FREE Money Hour Mortgage Talk Radio.

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