Building the Best IRA Portfolio For Your Retirement – Part I

While being middle aged, or older, in good health, and a wage earner; take advantage of the great opportunity to invest in an Individual Retirement Account (IRA) which, for all practical purposes, is a savings account. If you are under 50 years of age at the end of 2012: The maximum contribution that you can make to a traditional or Roth IRA is the smaller of $5,000 or the amount of your taxable compensation for 2012. This limit can be split between a traditional and a Roth IRA but the combined limit is $5,000. The maximum contribution to a Roth IRA and the maximum deductible contribution to a traditional IRA may be reduced depending upon your modified adjusted gross income (modified AGI). There is no established minimum IRA contribution to open an account except a minimum purchase a mutual fund requires.