For the year 2019, the maximum contribution you can make to a traditional or roth IRA is $6,000.00 or $7,000.00 (if 50 or older) or your taxable contribution for the year. However, this limit does not apply to rollovers or qualified reservist payments.
Some things to be aware of with the separate plans are:
- You can't make regular contributions to a traditional IRA if you are older than 70 1/2. You can still make contributions to a Roth IRA regardless of age.
- You can make rollover contributions to a Roth or traditional IRA regardless of age.
Taxes on excess contributions occur when:
- You contribute more than the contribution limit (this year $6,000.00 per person or 7,000.00 per person if over 50).
- Make a regular contribution to a traditional IRA over age 70 1/2.
- Make an improper rollover to an IRA.
Excess contributions are taxed at a 6% rate per year as long as the contributions remain in the IRA.