IRA Account Limits

This will cover contribution limits and income limits for IRA accounts. You can contribute either $5,000 or $6,000 per person per year depending upon your age. You can contribute to the amount of your earned income. If you are married, filing jointly, over 50 year old, and you have a combined earned income of $12,000 you can contribute $12,000 per year. You can make a contribution for a year up to April 15th of the following year. So between January and April 15th you can make a contribution for the previous year and the current year. This can be complicated so let me know if you have a question on this subject.

Vanguard

The Federal Reserve Board took center stage this week, as its most recent release highlighted internal debate about its efforts to stimulate the economy while considering inflationary pressures such as fast-rising food and oil prices. Initial jobless claims fell again, but so did a leading indicator of service-sector activity. For the week ended April 8, the S&P 500 Index fell 0.3% to 1,328 (for a year-to-date total return—including price change plus dividends—of about 6.2%). The yield of the 10-year U.S. Treasury note rose 13 basis points to 3.59% (for a year-to-date increase of 29 basis points).

2010 Combined Traditional and Roth IRA Contribution Limits

If you are under 50 years of age at the end of 2010: The maximum contribution that you can make to a traditional or Roth IRA is the smaller of $5,000 or the amount of your taxable compensation for 2010. This limit can be split between a traditional and a Roth IRA but the combined limit is $5,000. The maximum contribution to a Roth IRA and the maximum deductible contribution to a traditional IRA may be reduced depending upon your modified adjusted gross income (modified AGI).

If you are 50 years of age or older before the end of 2010: The maximum contribution that can be made to a traditional or Roth IRA is the smaller of $6,000 or the amount of your taxable compensation for 2010. This limit can be split between a traditional and a Roth IRA but the combined limit is $6,000. The maximum contribution to a Roth IRA and the maximum deductible contribution to a traditional IRA may be reduced depending upon your modified AGI.

Traditional IRA Income Limits for 2010

In 2010, the modified adjusted gross income or AGI contribution limits for traditional IRAs were raised. If you are covered by a retirement plan at work, then your tax-deductible contribution to a traditional IRA is phased-out if:

•Your filing status is married filing jointly, and your AGI is more than $89,000 but less than $109,000.
•Your filing status is single or head of household, and your AGI is more than $56,000 but less than $66,000.
If your tax filing status is married filing separate returns, then your deductible phase out starts at under $10,000.

Traditional IRA Income Limits for 2011

In 2011, the modified adjusted gross income or AGI contribution limits for traditional IRAs were raised. If you are covered by a retirement plan at work, then your tax-deductible contribution to a traditional IRA is phased-out if:

•Your filing status is married filing jointly, and your AGI is more than $90,000 but less than $110,000.
•Your filing status is single or head of household, and your AGI is more than $56,000 but less than $66,000.
If your tax filing status is married filing separate returns, then your deductible phase out starts at under $10,000.

Roth IRA Income Limits in 2010

•Single filers with modified adjusted gross income up to $105,000 can make a full contribution. If your adjusted gross income is in excess of $120,000, then you cannot make a contribution to a Roth IRA.
•Joint filers with modified adjusted gross income up to $167,000 can make a full contribution. If your adjusted gross income is in excess of $177,000, then you cannot make a contribution to a Roth IRA in 2010.
Roth IRA Income Limits in 2011

In 2011, the following income limit rules apply to Roth IRAs:

•Single filers with modified adjusted gross income up to $107,000 can make a full contribution. If your adjusted gross income is in excess of $122,000, then you cannot make a contribution to a Roth IRA.
•Joint filers with modified adjusted gross income up to $169,000 can make a full contribution. If your adjusted gross income is in excess of $179,000, then you cannot make a contribution to a Roth IRA in 2011.

Security Tip - Put your car keys beside your bed at night

Tell your spouse, your children, your neighbors, your parents, your Dr's office, the check-out girl at the market, everyone you run across. Put your car keys beside your bed at night.

If you hear a noise outside your home or someone trying to get in your house, just press the panic button for your car. The alarm will be set off, and the horn will continue to sound until either you turn it off or the car battery dies. This tip came from a neighborhood watch coordinator. Next time you come home for the night and you start to put your keys away, think of this: It's a security alarm system that you probably already have and requires no installation. Test it. It will go off from most everywhere inside your house and will keep honking until your battery runs down or until you reset it with the button on the key fob chain. It works if you park in your driveway or garage. If your car alarm goes off when someone is trying to break into your house, odds are the burglar/rapist won't stick around. After a few seconds all the neighbors will be looking out their windows to see who is out there and sure enough the criminal won't want that. And remember to carry your keys while walking to your car in a parking lot. The alarm can work the same way there. This is something that should really be shared with everyone. Maybe it could save a life or a sexual abuse crime.