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].