Individual retirement accounts (IRAs) give taxpayers a means to accumulate tax-deferred funds that can provide income during retirement. Traditional and Roth IRAs have similar deposit rules, but some differences apply. How much you may deposit and for how long depends on the type of IRA you open.
You may make deposits to your traditional IRA until you are 70 1/2 years old, at which time you must begin to take minimum withdrawals.
You are eligible to deposit funds into a Roth IRA for as long as you like as long as you do not exceed the maximum income limits set by the IRS.
You must have earned income equal to or greater than the amount you deposit into your individual retirement account.
Until you are 50 years old, the IRS allows you to deposit up to $5,000 per year into your IRA. Once you reach 50 years of age, your maximum contribution is $6,000 per year.
You have until April 15 of the next year to make deposits to your IRA for the current year. You may deposit into both an IRA account and a 401(k) account during the same tax year.
M.J. Kelly began writing professionally in 2007. Her background includes real estate sales, taxation, college admissions and financial planning. Focused on business, careers and real estate, she has written content that has appeared on numerous lifestyle-related websites. A graduate of Boston University, Kelly has earned a Bachelor of Arts in English language and literature.