Scott On Money

The maximum contribution limit for both traditional and Roth IRAs in 2006 is $4000. Of course with the IRS there are always exceptions. You can’t exceed your income. You can contribute and extra $1000 dollars if your over 50 (not all the exceptions are bad!).

A lot of people are precluded from using IRAs because of there “high” incomes. If you have an income over $50,000 a year or you already have a retirement plan from work check out the more detailed limits and phase outs that apply in these cases.

Find out how much you can contribute and make very effort to get this money put away to save a tremendous amount of tax expense.