Can an individual contribute to both a Roth IRA and a Traditional IRA in the same year?

By Denise Appleby AAA
A:

Yes. An individual may make IRA contributions to both a Roth and a Traditional IRA, providing the combined contribution total does not exceed the contribution limit for the year.



For instance, for tax year 2007, an individual may make a total contribution - whether to one IRA or partially to a Traditional IRA and partially to a Roth IRA - of up to $4,000 or 100% of compensation, whichever is less. If the individual reaches age 50 by the end of 2007, the dollar (contribution) limit is $5,000 ($4,000 plus a "catch-up" contribution of $1,000).



The total amount contributed to both the Traditional and the Roth cannot exceed $4,000 ($5,000 if age 50 or older) for tax year 2007.



This question was answered by Denise Appleby
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