There are two basic types of IRA accounts:
Traditional IRA – (contributions can be deductible and nondeductible)
Roth IRA* – (contributions are nondeductible)
Limits apply to both types of IRA. For the tax year 2019, the contribution amount is as follows:
$6,000 for taxpayers under the age of 50
$7,000 for taxpayers over the age of 50 (a $1,000 catch-up contribution is allowed for taxpayers 50 and older)
*A personal savings plan that offers the taxpayer tax advantages to set aside money for his retirement. Contributions are not deductible; however, qualified distributions are tax-free. The earnings from a Roth IRA are also distributed tax-free.