What is the Minimum and Maximum Roth IRA Contribution?

Making a Roth IRA contribution on a regular basis is a good way to invest in your retirement. Understanding the minimum and maximum contributions that you can make is important so that you do not break the rules of the Roth IRA program. The money you invest is tax-free, if you invest properly. Here are a few things to consider about the minimum and maximum Roth IRA contribution.

Minimum Contribution

There is no specific minimum contribution that is the same with all Roth IRA accounts. The minimum investment will be depend on the policies of the broker that you choose. Some of them have a $500 minimum initial investment, with a requirement to make a $100 per month contribution. Others require at least $1000 per year. You can shop around and find a broker that fits your needs in this area.

Maximum Contribution

The maximum Roth IRA contribution as of 2010 is $5000 per year. If you are over the age of 50, you can make an additional contribution of $1000, which brings your grand total up to $6000. Since the limits are the same as the traditional IRA, you are able to set aside more effective money with the Roth IRA because you have already paid the taxes on it.