Can I contribute MORE than $2000 as a single taxpayer in any given yea

[Guest Paulaanne]

I'm a single taxpayer and in past years have contributed only the $2000 to my Roth IRA and nothing to my regular IRAs that I had before Roth came around.

Question 1: can I contribute more than $2000 (if I have it) to my Roth?

Question 2: can I contribute to my regular IRA in addition to my Roth?

Is only the first $2000 tax deductible, and anything over and above that not deductible?

Note: I'm nowhere near the income limit for single taxpayers ($95,000 or so I think) so that's not an issue.

[Michael Devault]

In answer to your questions:

1. The contribution limit for Roth IRAs and traditional IRAs increased on January 1, 2002 to $3,000.

2. You can contribute to both, but the total contributions to both cannot exceed the $3,000 limit.

3. The entire $3,000 contribution to a traditional IRA may be deductible, depending on whether you're covered by another retirement plan at work.

By the way, if you're 50 years old or older, there's a $500 catch-up available, making the total contribution $3,500 this year.

Hope this helps.

[John G]

Clarification: the new $3,000 max is for contributions made this year for 2002. It does not apply for contributions made in 2002 for 2001 tax year.

If you currently have a low tax rate and do not expect a lower rate in retirement, then you are probably better off going 100% to a Roth.