Traditional IRA contributions
• Anyone under age 701⁄2 who has U.S. earned compensation1 can contribute up to the contribution limit as indicated in the Current and
Future Year IRA Contribution Limits table below, or 100% of compensation, whichever is less, per tax year, to a Traditional IRA. You
must be 18 years of age or older to open a Premiere Select IRA.
• A spouse may also contribute up to the contribution limit or 100% of the couple’s combined compensation per tax year, whichever is
less, to a separate Traditional IRA (Spousal IRA), as long as he/she files a joint income tax return.
• Married Individuals filing a joint federal income tax return may contribute up to the contribution limit to both a Traditional IRA and a
Spousal IRA, as long as the combined annual contributions to both IRAs does not exceed twice the contribution limit or 100% of the
couple’s combined compensation, whichever is less.
• Contributions can be made to both a Traditional IRA and a Roth IRA, but the combined total contribution cannot exceed the
contribution limit per tax year or 100% of compensation per tax year, whichever is less.
1 Compensation is generally income reported on Form W-2
Current and future year IRA contribution limits
Annual contribution limit:
Additional catch-up contribution
for people age 50 and older*:
2002 – 2004
2006 – 2007
*You must be projected to reach age 50 or older by 12/31 of the tax year to which the contribution relates.
**Annual contribution will be indexed for inflation in $500 increments thereafter.
Deductibility of Traditional IRA contributions
• Contributions may be fully or partially tax deductible depending on the individual’s Adjusted Gross Income (AGI) and whether or not
he or she is an active participant in an employer-sponsored retirement plan.
If an individual is not an active participant in an employer-sponsored plan, a fully deductible contribution (up to the annual
contribution limit) can be made re