Traditional IRA Contributions Limit Table

If you have earned income and if your individual or joint modified adjusted gross income (MAGI) falls within certain parameters, you may contribute 100% of earned income up to: ¹

What other information you should know.

• Your contributions to a Traditional IRA may or may not be tax-deductible. Deductibility is determined by two factors, whether you actively participate in an employer-maintained qualified retirement plan and your modified adjusted gross income.
• If you are not covered by an employer-maintained qualified retirement plan, you may deduct up to the maximum contribution for the tax year.
• If you're an active participant in an employer-maintained qualified retirement plan, the deduction is phased out between Adjusted Gross Income (AGI) for 2012, of $58,000 to $68,000 (single), between AGI of $92,000 to $112,000 (joint) and between AGI of $0 to $10,000 (married/separate).
• You can actually take a "distribution" or withdrawal from a Traditional IRA at any time, but you must wait until age 59½ to withdraw money without penalty. Distributions taken prior to age 59½ are subject to an IRS penalty of 10%. Exceptions include the withdrawal of money for a first-time home purchase, college expenses, qualified medical expenses, disability and death. Distributions of a required minimum amount must begin by April 1st of the year following the year the IRA owner attains the age of 70½. Each distribution is taxed as ordinary income in the year of distribution.
• ¹ These are intended as guidelines only, please contact your tax adviser for further information.