This article: Roth IRA Rules 2011, will cover what has stayed the same from 2010 and what changes you need to be aware of so that you can make the most of your Roth IRA.
Roth IRA Rules 2011 – Similarities from 2010
Just as in 2010, many Roth IRA rules have remained the same in 2011. All of the major limits and contribution rules that affect you are still decided by the same main criteria: your age, marital status, and the income bracket which you fall under. Also, the maximum contribution that you can make has stayed the same.
Finally, a reminder that, as always, any contribution to your retirement account must be made before the tax deadline of the following year, usually April 15th.
Roth IRA Rules 2011 – Changes From 2010
Here are always a few minor changes that occur year to year, below are the main areas that you should stay current with.
Roth IRA Rules 2011 – Changes in Contribution Limits
One of the main changes of the Roth IRA rules in 2011 is that the upper and lower income bracket amounts have changed. The lower bound was $105,000 in 2010, and the upper bound was $120,000. In 2011 however, the bounds are $107,000 and $122,000 respectively. This is a change that usually occurs to mirror inflation in the national economy. The bounds have also been bumped by $2,000 on each end if you are planning on filing as a joint married couple.
Just a brief refresher on the significance of these bounds, simply put: If you make less than the lower bound you can contribute the maximum, and if you make more than the upper bound, you are not allowed to contribute at all. Please refer to our other articles for full detail about Roth IRA Contribution Limits in 2011.
Roth IRA Maximum Contribution
The maximum yearly contribution amount has stayed the same, $5,000 if you’re under 50 and $6,000 if you are over 50. This maximum contribution depends on a few other factors, which are covered in detail in this article about your Roth IRA maximum contribution.
These are the main changes in Roth IRA Rules 2011, refer to our next article Roth IRA Rules 2012 for next years rule changes.