An IRA contribution is the dollar amount that an IRA holder (and/or their employer in the case of an employer-sponsored plan) puts into their IRA. All IRA contributions must be made by check, wire transfer, or cash. Certain requirements must be met in order to contribute to each account type. IRA contributions are discretionary, meaning that you are not required to make deposits every year.
Each type of IRA has an annual contribution limit and a date by which the contribution must be made. The IRS has released 2017/2018 IRA contribution limits for Traditional IRAs, Roth IRAs, SEP IRAs, SIMPLE IRAs, Individual 401(k) plans, HSAs and
SIMPLE contribution limits for those under age 50 is $12,500 with a $3,000 catch-up elective for those 50 or older. The 2017 SEP employer contribution may be up to 25% of compensation or a maximum of $54,000.
The Education Savings Account (ESA) contribution limit for 2017 and 2018 is $2,000. Health Savings Account (HSA) contribution limits for single coverage and family coverage are $3,400 and $6,750 respectively.