IRA Center This is the internet’s source for information on Retirement Accounts
for beginners and professionals. The following information covers traditional IRAs, roth IRAs, 401(k)s, 401(k)
rollovers, SIMPLE IRAs, SEP IRAs, 403(b)s, SARSEPs, Keoghs, Pension Plans. Do you participate in a retirement plan
through your employer? You may be illegible to start a Traditional or Roth IRA as well. Comparing the Traditional IRA Benefits to the Roth IRA
Can you contribute to a Traditional IRA or Roth IRA?
The following pages compare the benefits of a Traditional IRA to a Roth IRA based on the combination of the following:
an individuals age, filing status, income, and an individuals participation in an employer's sponsored retirement
program.
Approximate time to complete this module is less than 2 minutes.
The following information is based on IRS Publication 590 for the use in preparing your 1998 returns. See
Important Changes for 2000
To set up an IRA, you (or, if you file a joint return, your spouse) must have taxable compensation.
A spouse with no compensation filing a joint return may be able to contribute up to $2,000 in his or her own
IRA. This means that the total combined contributions that can be made on behalf of a married couple can
be as much as $4,000 for the year.
The maximum deduction for a Traditional IRA is $2,000 or 100% of your income, whichever is less.
If you make contributions to a Traditional or Roth IRA in the same year, the total contribution per individual
cannot exceed $2,000.
Your child may be able to start a Traditional or Roth IRA.
