As my mother was so kind to remind me (via a text message to my cell phone at 5:30am Sunday morning), the contribution limits for Roth IRAs increased in 2008.
This is very good news for us guppies who hope to one day roll in piles of money sipping fruity drinks on the beach. (If you’re not sure about this Roth business, J.D. at Get Rich Slowly has a great article about how to set up a Roth IRA.)
In 2006-2007, a person below age 50 was allowed to contribute a maximum of $4,000 per year. That works out to $334 per month, or about $10.95 per day. However, in 2008 the limit became $5,000 for that same group. That’s $417 per month, or about $13.70 per day.
If you haven’t maxed out your 2007 Roth yet, don’t worry! You’ve got until tax day (April 17, 2008) to fully fund your 2007 Roth, and you can start funding your 2008 Roth any time now, so get cracking!
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