Traditional IRA Contributions Sample Clauses
The 'Traditional IRA Contributions' clause defines the rules and conditions under which an individual can make contributions to a Traditional Individual Retirement Account (IRA). It typically outlines eligibility requirements, such as age and income limits, and specifies the maximum annual contribution amount allowed by law. For example, it may state that only earned income can be contributed and that contributions must be made by a certain tax filing deadline. The core function of this clause is to ensure compliance with tax regulations and to provide clear guidance on how and when contributions to a Traditional IRA can be made, helping individuals plan for retirement while avoiding penalties.
Traditional IRA Contributions. An Individual may make a cash contribution in any amount up to the Maximum Annual Contribution (reduced by the amount of any contributions made by the Individual or on the Individual’s behalf to another IRA or to a ▇▇▇▇ ▇▇▇ for the same Tax Year) in which the Individual is under the age of 70 1/2. The Trustee is not permitted to accept contributions in excess of the Maximum Annual Contribution amount for any Tax Year unless it is a Rollover Contribution [as permitted by Code Sections 402(c) and 403(a)(4)]. Contributions may be made to an IRA for any Tax Year at any time starting on the first day of the Tax Year and ending on the day the Individual’s Federal income tax return is due for such year (not including any extensions). Except in the case of a Rollover Contribution [as permitted by Code Sections 402(c), 402(e)(6), 403(a)(4), 403(b)(8), 403(b)(10), 408(d)(3) and 457(e)(16)(A)(i)], the total of such contributions shall not exceed the Maximum Annual Contribution amount for each year listed below: 2002 through 2004 $ 3,000 2005 through 2007 $ 4,000 2008 and thereafter $ 5,000 For years after 2008, the $5,000 limit is subject to cost-of-living adjustments (“COLAs”) under Code Section 219(b)(5)(c). Such adjustments will be in $500 increments. If by December 31 of any taxable year an Individual is age fifty (50) or over, the Individual may make an additional contribution (a “Catch-Up Contribution”) to all of the Individual’s IRAs in the aggregate (and if the Individual is eligible, ▇▇▇▇ IRAs) up to $500 for Tax Years 2002 through 2005, and up to $1,000 for Tax Years 2006 and thereafter. If the Individual is eligible, any annual contribution the Individual makes that exceeds the Individual’s Maximum Annual Contribution will be treated as a Catch-Up Contribution (up to the limits described above) unless the Individual elects to treat such amounts as an Excess Contribution described in paragraph 18.8 below.
Traditional IRA Contributions. An Individual may make a cash contribution in any amount up to the lesser of the Maximum Annual Contribution or 100% of Compensation for a Tax Year (reduced by the amount of any contributions made by the Individual or on the Individual’s behalf to another IRA or to a ▇▇▇▇ ▇▇▇ for the same Tax Year) in any year in which the Individual is under the age of 70 1/2. The Trustee is not permitted to accept contributions in excess of the Maximum Annual Contribution amount for any Tax Year unless it is a Rollover Contribution [as permitted by Code Sections 402(c) and 403(a)(4)]. Contributions may be made to an IRA for any Tax Year at any time starting on the first day of the Tax Year and ending on the day the Individual’s Federal income tax return is due for such year (not including any extensions). Except in the case of a Rollover Contribution [as permitted by Code Sections 402(c), 402(e)(6), 403(a)(4), 403(b)(8), 403(b)(10), 408(d)(3) and 457(e)(16)(A)(i)], the total of such contributions shall not exceed the Maximum Annual Contribution amount for each year listed below: 2002 through 2004 $ 3,000 2005 through 2007 $ 4,000 2008 and thereafter $ 5,000 For years after 2008, the $5,000 limit is subject to cost-of-living adjustments (“COLAs”) under Code Section 219(b)(5)(c). Such adjustments will be in $500 increments.