If you have several different retirement accounts, such as a 401(k) at work and individual plans on your own, keeping up with the Internal Revenue Service rules on each is a challenge, especially if you are 50 or older and eligible to make additional catch-up retirement plan contributions.
Below are the limits on 2009 contributions, which for individual retirement accounts can be made until the tax filing deadline of April 15, 2010. The 2010 amounts will help in your retirement savings planning. Because inflation was low, the 2010 retirement limits and thresholds are the same as in 2009.
In 2010, the maximum income limits for Roth IRA contributions increases a bit, going from $166,000 to $167,000 for married couples filing jointly. The income level for singles, however, remains unchanged at $105,000.
But in 2010, individuals who wish to convert a traditional IRA to a Roth account no longer face the $100,000 income limit. This new law means that even if you earn too much to contribute to a Roth IRA in 2010, you contribute to a traditional IRA and then roll that traditional IRA money into a Roth.
Limits on contributions
|
IRA, traditional and Roth:
Under age 50
Age 50 and older |
$5,000
$6,000 |
$5,000
$6,000 |
Deferred contribution plans
e.g., 401(k), 403(b) and 457 plans:
Under age 50
Age 50 and older |
$16,500
$22,000 |
$16,500
$22,000 |
SIMPLE plans:
Under age 50
Age 50 and older |
$11,500
$14,000 |
$11,500
$14,000 |
Retirement plan saver's tax credit
(subject to income limits) | $1,000 | $1,000 |
| Social Security wage base | $106,800 | $106,800 |
<< Back to Bankrate's 2010 Tax guide table of contents.
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