Self directed IRAs do have contribution limits. Each year holds different requirements and limits. One requirement for one year will not be the same limit or requirement as another year.
In 2010 the contribution limit is $5,000 for people that are younger than 50 years old. If you are age 50 and above you can put in a $1,000 more, making the total contribution maximum $6,000. Just a few years back the limit was much lower.
Traditional IRAs have two different types of accounts. There are deductible accounts that deduct part of your contributions. They also have nondeductible accounts.
There are requirements for qualifying for a deductible IRA. Deductible IRAs allow you to deduct part, or all, of your total contributions from your taxable income. A lot of people like this option for their retirement plans.
A deductible IRA is available to people that do not have a retirement option from their work. They also have to take the payments only from the adjusted gross income. No other investments are able to be put in to an IRA.
This year there is a limit on how much you can make. In 2010 the rules now state that people trying to get a deductible IRA cannot have an AGI of more than $65,000 in single households. The limit for married people, filing jointly, is $109,000.
Some people who are not covered for retirement plans through their work may have other options. If your spouse works, and is covered by a retirement plan, there are circumstances when you can add money to your spouse’s deductible IRA. There are other IRAs available, such as self directed IRAs and Roth IRAs.
Both Self directed IRAs and Roth IRAs have their own limits and rules. Roth IRAs, for example, only allow people to contribute to it if they are making below $120,000 for single households, and $177,000 if married and filing jointly.