It is important for those who are planning to set up their Individual Retirement Accounts, to make sure that they are fully aware of the limits and deadlines to ensure that they will be able to reap the rewards of preparing for their futures after retirement. 2015 is almost coming to a close, and with this in mind, it is highly advised for Traditional and ROTH IRA account holders to know everything related to their plans including their IRA contribution Limits and every other self-directed IRA rules that would greatly benefit them in the future.
What are the Recommended Total IRA Contribution Limits for 2015?
Knowing your IRA contribution limits is one that holds great bearing to how your account will turn out in the future. This is the reason why you have to make sure to meet the requirements in terms of your total contributions, aside from meeting the deadline. Here are the IRA contribution limits that you should know:
- 49 years old and below – the amount has remained unchanged for the past three years, which means that just like last year, the contribution limit for IRA is still at $5,500.
- 50 years and older – for those who belong to this age bracket, the limit is set at $6,500.
- Salary is lower than the limit – in case your salary is below the set limits, regardless of your age, your limit will be computed based on your total taxable salary for the entire year.
Additional Contribution Rules You should Know
Being able to manage the best self directed IRA also requires you to study and conduct a research on additional rules, reminders and recommendations that will help ensure that you will not be penalized for over contribution, not meeting the appropriate contribution limits or even early withdrawal.
- The deadline for contributions for Traditional and even ROTH IRA is on the 4th of April, 2016. This means that you still have enough time to catch up on your contributions.
- The catch-up contribution limit for those over 50 years old is at $1,000.
- Avoid early withdrawal of contributions to avoid the 10% penalty fee. With a few exceptions, you can be charged a penalty if you withdraw from your account before reaching the age of 59 ½.
- The contribution limit will not apply on those who will be doing a rollover of their IRA. Remember that rollovers can only be done once a year.
With ample research and being in tune with the latest IRA-related news and updates, as well as by consulting with IRA experts, you will never have to miss out on knowing what your IRA contribution limits are.
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