Ah, the joy of Roth IRA limits. Roth IRAs, like any other form of IRA (traditional, educational, etc.) come with contribution and withdrawal limits. The Federal government, via the IRS imposes specific limits on how much money you can put into your IRA accounts. While you can have as many IRA accounts as you want you still have a contribution limit that you cannot exceed. The IRS re-evaluates the limits each fiscal year, however, and makes adjustments due to inflation. Now, just because there are limits on how much you can contribute each year, there are not limits on how much you can deposit at a time or how many times you can deposit. If you want to deposit a certain amount per month or quarter, you can as long as your total does not exceed the limit as set by the IRS.

Most tax advisors will urge you to take full advantage of the tax free benefits you can receive from Roth IRA accounts. They will tell you to aim for the maximum deposit each year because you will get the most benefit from it. As long as you can afford to put this much into savings each year without going into debt it is more fruitful. Here’s why: At the end of each fiscal year your contribution limit is reset, meaning you can once again deposit up to the limit. If you only contributed $1,000 last year, you cannot make up that additional $4,000 this year to reap the benefits. You can only deposit $5,000 per fiscal year (or as set by the IRS).

Keep in mind that contribution limits are also determined by your age. If you are over the age of 50 you can typically deposit more money than if you are 49 years old or younger. In the year 2007, those who are over 50 years of age can contribute up to $6,000 into their Roth IRA accounts while those under 50 can only deposit $5,000.

Here are a few more features that are available through having a Roth IRA account:

• No absolute age for distribution (limit)

• You can use your IRA to invest in a multitude of things such as collectibles, CD’s, stocks and bonds, ECT. They are among the most flexible forms of retirement planning.

• Everything earned is tax free if you are within the rules of the IRA (although your deposits are not tax deductible).

• You can usually withdraw money with little or no withdrawal fee (depending on the situation and the amount withdrawn.

Roth IRA accounts are one of the best financial tools out on the market today and since their induction in 1997 they have helped many people save for the future. Sure, there are contribution limits, as with any type of IRA, but as long as you reach those limits each year you can effectively save for retirement.