There are several factors that determine how much you can contribute to your IRA. First of all one of the categories is to be under 50 years old by the end of 2009. The other category is to be 50 years old or older before 2010.
If you are under 50 years of age at the end of 2009 then, the maximum IRA contribution that can be made is $5,000 or the amount of your taxable compensation for 2009. It doesn’t matter if you are contributing to a traditional IRA or a Roth IRA. The combined limit is $5,000. Now your modified adjusted gross income will determine your maximum deductible contribution to a traditional IRA or a Roth IRA.

If you’re curious about what category you fall into you can use the Turbo Tax IRA contribution calculator. Their site is very easy to use and will give you results immediately. Sometimes it’s nice to use the calculator to get an idea of how much you can contribute to your IRA.

Now the other category is if you are 50 years old or older before 2010. The maximum contribution that can be made to a traditional IRA or Roth IRA is $6,000 or the amount of your taxable compensation for 2009. This can be divided among the two but, the maximum is $6,000. Keep in mind, this amount can be reduced depending on your modified adjusted gross income.

At Turbo Tax the IRA contribution calculator is free. I really enjoy using a site that has everything set up in a clear and concise manner. Not only do you have the IRA contribution calculator to use for free, you also have a whole plethora of information at your finger tips. If you think you would like to ask a question, you can ask for help from the tax experts or from the live community.

If you life has dramatically changed, such as, having a baby, the life events calculator will show you the new advantages you will have with your new life. It’s really very nice and easy to understand. Why don’t you take the burden off of yourself and let the software do the work for you? Who wants to read through volumes of new tax laws every year? I know I don’t. Visit TurboTax Online today, use the free IRA contribution calculator and set your mind at ease.