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Limits For Retirement Contributions Increased For 2009

On Behalf of | Mar 16, 2009 | Wills, Trusts, Estate Planning and Administration

The limits on deferring income through contributions to retirement accounts have been increased for 2009 as follows:

************************Below 50 *******Age 50 and above*********

IRA Contributions ————$5,000 ——-$6,000
Simple IRA Contributions -$11,500 ——-$14,000
401(k) Contributions ——–$16,500 ——$22,000
403(b) Contributions ——-$16,500 ——$22,000
457 Contributions———– $16,500 ——$22,000

In addition, the maximum deferral for Defined Contribution Plans and SEP/IRAs is $49,000, based on a maximum salary of $245,000. The 2009 Roth IRA Phase-out Range is $105,000-$120,000 for single taxpayers and $166,000-$176,000 for taxpayers who are married and filing jointly.

Joseph W. Kenny is a director and shareholder of Hamblett & Kerrigan, P.A. and practices in the areas of estate planning and taxation. He is also a Certified Public Accountant with certification as a Personal Financial Specialist. You can reach Attorney Kenny by email at [email protected].