IRA Contribution Limits

Definition

IRA contribution limits are the maximum amounts you can contribute to an individual retirement account in a given tax year, as set by the IRS. The limits are adjusted periodically for inflation and apply to the total across all your traditional and Roth IRAs combined. Individuals age 50 and older can make additional catch-up contributions. Exceeding the limit triggers a 6% excess contribution penalty each year the excess remains in the account.