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
(
Contact Denise)



RELATED FAQS

  1. How much will an employer generally contribute to a 401(a) plan?

    Find out how much employers may contribute to an employee's 401(a) retirement plan and why this amount can vary so widely ...
  2. When can benefits be received from a provident fund?

    Find out when participants in provident funds can begin receiving benefits, including how funds can be used to finance important ...
  3. Is Social Security Income a perpetuity?

    Find out why Social Security income is not classified as a perpetuity, including what constitutes a perpetuity and the basics ...
  4. What types of investments are allowed in a provident fund?

    Read about the types of investments allowed in various provident funds around the world, including the Indian, Malaysian ...
RELATED TERMS
  1. See-Through Trust

    A trust that is treated as the beneficiary of an individual retirement ...
  2. Backdoor Roth IRA

    A method that taxpayers can use to place retirement savings in ...
  3. Current Service Benefit

    The amount of pension benefit accrued by an employee who had ...
  4. Self Invested Personal Pension (SIPP)

    A tax-efficient retirement savings account available in Great ...
  5. Medigap

    Also called Medicare Supplement Insurance, Medigap is health ...
  6. Elder Care

    Elder care, sometimes called elderly care, refers to services ...

You May Also Like

Related Articles
  1. Retirement

    Does it Make Sense to Have an MLP in ...

  2. Retirement

    Top Tips for Rebalancing 401(k) Assets

  3. Professionals

    Why Millionaires are Running Scared

  4. Professionals

    Few Target-Date Managers Invest in Their ...

  5. Fundamental Analysis

    Should You Hire an Advisor or DIY Your ...

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!