Final answer:
Married taxpayers filing jointly can contribute to either a traditional IRA, with tax-deferred growth and pre-tax contributions, or a Roth IRA, with tax-free growth and after-tax contributions. Both have annual contribution limits. It's important to consult current IRS guidelines for the most accurate information.
Step-by-step explanation:
IRA Contributions for Married Taxpayers Filing Jointly
When married taxpayers file a joint tax return, both spouses have the option to contribute to an Individual Retirement Account (IRA). These contributions can be made to either a traditional IRA or a Roth IRA. The choice between the two generally depends on their current and expected future income tax brackets.
Traditional IRA
A traditional IRA offers tax-deferred growth, meaning that the contributions may be made pre-tax (reducing taxable income for the year), and taxes are paid upon withdrawal after retirement. The contributions for a traditional IRA cannot exceed certain limits, which were $5,500 for 2014 and 2015, with an additional catch-up contribution of $1,000 allowed for those 50 years and older.
Roth IRA
The Roth IRA allows for tax-free growth and withdrawals, where contributions are made with after-tax dollars. Just like the traditional IRA, there are contribution limits, which are the same as those of the traditional IRA. There is no tax deduction for contributions, but the benefits include no taxes on earnings and no mandatory withdrawals during retirement.
The specific contribution limits and tax benefits can be influenced by the couple's combined income and change yearly. It's essential to check the latest IRS guidelines or consult a tax professional to get up-to-date information on IRA contribution limits and tax implications.