Tradtional & Roth IRA limits..

[MoonShadow]

I have a quick question that I keep getting conflicting information about, even from 'professionals'.

Assuming that I am fully able to contribute to either a traditional or Roth IRA, does contributing to one reduce my limit for contributing to the other?  Or are the two annual limits completely independent of one another?

[MDM]

The limit applies to the total for both.  You cannot contribute $4K to traditional and another $4K to Roth.

See http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-IRA-Contribution-Limits.

[BarkyardBQ]

The limit applies to the total for both.  You cannot contribute $4K to traditional and another $4K to Roth.

See http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-IRA-Contribution-Limits.

+1

Put simply, you have a $5500 bucket called IRA, whether it's Roth or Traditional.

Traditional has a phase out for the tax deduction depending on your income.

[MoonShadow]

Thanks for the quick answer, MDM!  Now the next question is, what is a "qualified reservist repayment"?