These limits apply to the total amount of contributions made to all of your IRAs, including Roth and traditional IRAs. Roth IRAs and traditional IRAs are good options for those seeking to maximize their retirement options. The decision to invest in a traditional IRA or a Roth IRA depends on several factors, such as how much you can contribute to each of them, your long-term retirement goals and preferred tax treatment. In addition, traditional IRAs require the account holder to start receiving distributions at a certain age, while Roth IRAs do not.
Whether your traditional IRA contributions are tax-deductible and whether you are eligible to contribute to a Roth IRA will depend on your income and other factors. If you don't qualify for a Roth IRA due to income limits, some investors choose to make contributions to a traditional IRA and then convert them to a Roth IRA. If you change jobs, you have the option of converting a traditional 401 (k) directly into a Roth IRA without having to convert it into a traditional IRA first. If you make too much money, you may still be able to contribute to a Roth IRA through a strategy called a clandestine Roth IRA.
However, you can still contribute to a Roth IRA and make cumulative contributions to a Roth or traditional IRA, regardless of your age.