Individuals can save up to $5,500 through an individual retirement account (IRA) for 2013, according to new limits announced by the IRS (IR-2012-77). This new $5,500 limit is the first change in IRA contribution limits since 2008. For the years 2008 through 2012, IRA contributions were capped at $5,000.
The $5,500 IRA contribution limit for 2013 applies to traditional IRAs and Roth IRAs collectively. Taxpayers can choose to contribute either to a traditional IRA or to a Roth IRA or to both in any combination, as long as total contributions don't exceed the annual limit.