If you’re looking to contribute to a new or existing Roth IRA or traditional IRA in 2011, we have the information to let you plan ahead. There are some slight changes to the income limits from the 2010 limits, but not the contribution limits.
2011 Maximum Contribution Limits
The 2011 Roth IRA and traditional IRA contribution limits will be the same as in 2010. What that allows is a maximum $5,000 contribution for both the Roth IRA and the traditional IRA. If you are 50 years old or older you have the opportunity to make an additional “catch up” contribution of $1,000 (a total of $6,000 max. contribution). The “catch up” contribution is available for both the Roth IRA and traditional IRA.
While the maximum contribution hasn’t changed, there are some slight changes to the income limits that phase out the allowable contributions or deductions. All income limits will be based on your modified adjusted gross income or MAGI.
“MidTerm Election Effect”
The Security and Exchange Commission (SEC) voted unanimously recently to propose limits on mutual fund 12b-1 fees and provide more transparency to investors. The SEC’s proposal would help protect investors by limiting 12b-1 fees to 0.25%, improve the transparency of fees for investors, encourage retail competition, and revise fund director oversight duties.
Investing for your retirement is one of the most important things you can do for your future. Taking advantage of an IRA (Individual Retirement Account) to help supplement your future retirement income is always a good idea. Which IRA is best for you?
Dividend ReInvestment Plans or DRIPs can be a convenient and cheap way of compounding growth in your investment portfolio. If you are not signed up in a DRIP, any dividend paying securities (i.e. stocks, mutual funds, REITs, etc.) that you own will deposit all dividend payments into the accounts those securities are attached or you will receive a check if there is no brokerage account.