IRA Contribution Limits

• Contributions to IRA accounts are limited by statute and IRS regulations. As of 2009, the maximum annual contribution allowed for most taxpayers is $5,000. For the years following 2009, the maximum contribution amount is adjusted for inflation each year by the IRS.
  
  

Catch-Up Contributions

• Taxpayers who are 50 years of age or older by December 31 of the tax year in question are allowed to contribute an additional $1,000 to an IRA as a catch-up contribution.
  
  

Taxable Compensation Limitation

• Contributions to IRA accounts are limited to the total amount of taxable compensation earned by the individual. This limit supersedes the above contribution limits. The exception to this rule is for spouses of taxpayers who have taxable compensation. A contribution may be made to a spousal IRA up to the maximum limits outlined above so long as the total contribution made to both spouses' IRA accounts is less than or equal to the total taxable compensation of the couple.
  
  

April 15 Loophole

• Assuming adequate income, from April 15 to December 31 of each year, the most you can put in an IRA in a lump sum is $5,000 unless you are 50 or older, in which case it is $6,000.
  
  However, from January 1 to April 15, a loophole allows for a lump sum contribution that is double that amount. Contributions made into an IRA before April 15 may be designated as previous-year contributions. Thus, if no contributions had been made the previous year, then $5,000 ($6,000 for age 50+) could be deposited for that year, while an additional $5,000 ($6,000 for age 50+) could be contributed for the current year.
  
  

Lump Sum Maximum

• Therefore, maximum amount that can be put into an IRA in a lump sum is $10,000 ($12,000 for age 50+) if the contribution is made prior to April 15 and no money was contributed during the previous year.