What are the 2010 IRA contribution limits?

The 2010 contribution limit for a traditional IRA, or individual retirement account, is $5,000. Those who turned 50 that year could contribute an additional $1,000, for a total of $6,000.

With a traditional IRA, contributions made to the account are deductible from tax returns each year, and earnings grow on a tax-deferred basis until they are withdrawn when the account holder retires. In addition, because many people end up in a lower tax bracket when they retire based on having less income, any withdrawn funds are taxed at a lower rate. The contribution limit for a traditional IRA for 2014 and 2015 is $5,500, or $6,500 for those 50 or older.