Question

The maximum contribution that a taxpayer can make into a Roth IRA is ______ the allowable contribution for a traditional IRA.

a) Double
b) Triple
c) Equal to
d) Half of

Answer 1

The maximum contribution allowed for a Roth IRA is the same as for a traditional IRA, with the annual limit being $5,500 or $6,500 if the individual is 50 or older.

Step-by-step explanation:

The maximum contribution that a taxpayer can make into a Roth IRA is equal to the allowable contribution for a traditional IRA. For the years 2014 and 2015, the total contributions to all traditional and Roth IRAs cannot exceed $5,500 ($6,500 if you're age 50 or older). A traditional IRA is an account to which you can contribute pre-tax or after-tax dollars. Your contributions may be tax deductible depending on your situation, helping to give you immediate tax benefits. The same contribution limits apply to both types of IRAs, offering flexibility based on an individual's tax situation and retirement planning strategy.