Welcome
To Kelan Roy CPA .Com
|
Welcome
To Kelan Roy CPA .Com |
|
2009 Contribution Limits
IRAs, Simple IRA, Roth IRA, SEP, 401K, 457 and 403B Plans
Including “Catch-Up” Provisions For Certain Taxpayers
2008 Contribution Limits
HOME TAX SERVICES BUSINESS SOLUTIONS TECHNOLOGY MANAGEMENT FIRM PROFILE SITEMAP
The Economic Growth and Tax Relief Reconciliation Act of 2001 increased the maximum amount you can contribute annually to tax favored retirement accounts. Beginning in tax year 2002, if you are over 50 years of age (on or before December 31), you also can make “catch-up” contributions*** to your retirement account. Catch up contributions are eligible for employer matching contributions. Unfortunately, the tax act did not raise the income limits for traditional IRAs, Simple IRAs or Roth IRAs.
There is some good tax news for higher income taxpayers prohibited from contributing to Roth IRA or Traditional IRA. Participants in employer sponsored qualified retirement plans such as a 401 K and 403 B, will receive increased annual contribution limits and larger “catch-up” amounts.
There is even better tax news if you have a Simplified Employee Pension (SEP). Beginning in tax year 2002, the Economic Growth and Tax Relief Reconciliation Act increased the percentage you can contribute to a SEP from 15% to 25% and the maximum considered compensation from $170,000 to $200,000. If you are a employee of a company the maximum contribution to a SEP in 2002 or 2003 is $40,000. If you are self employed the maximum contribution percentage is reduced to 20% but the maximum contribution remains capped at $40,000. For tax year 2004 the compensation limit is increased to $205,000 resulting in a maximum SEP contribution of $41,000. For tax year 2005 the compensation limit is increased to $210,000 resulting in a maximum SEP contribution of $42,000. For tax year 2006 the compensation limit is increased to $220,000 resulting in a maximum SEP contribution of $44,000. For tax year 2007 the compensation limit is increased to $225,000 resulting in a maximum SEP contribution of $45,000. For tax year 2008 the compensation limit is increased to $230,000 resulting in a maximum SEP contribution of $46,000. For tax year 2009 the compensation limit is increased to $245,000 resulting in a maximum SEP contribution of $49,000.
The tax act also includes a new tax credit aimed at encouraging retirement savings by lower-income taxpayers. Subject to income phase-out rules, a credit ranging from 10% to 50% of contributions to employer sponsored retirement plans and IRAs. The dollar-for-dollar credit is only available starting in 2002 and is based on a maximum eligible annual contribution of $2,000. You must also be over 18 years of age, not a full time student or claimed as a dependent another taxpayer’s return.
See Also The Jobs and Growth Tax Relief Reconciliation Act of 2003
Simplified Employee Pension Plan SEP
Savings Incentive Match Plan for Employees SIMPLE
Year Maximum Regular IRA Contribution Catch-up Contribution ***
2002 $3,000 $500
2003 $3,000 $500
2004 $3,000 $500
2005 $4,000 $500
2006 $4,000 $1,000
2007 $4,000 $1,000
2008 $5,000 $1,000
2009 $5,000 $1,000
2010 Indexed to Inflation Indexed to Inflation
Year Maximum Roth IRA Contribution Catch-up Contribution ***
2002 $3,000 $500
2003 $3,000 $500
2004 $3,000 $500
2005 $4,000 $500
2006 $4,000 $1,000
2007 $4,000 $1,000
2008 $5,000 $1,000
2009 $5,000 $1,000
2010 Indexed to Inflation Indexed to Inflation
Year Maximum Simple IRA Contribution Catch-up Contribution ***
2002 $7,000 $500
2003 $8,000 $1,000
2004 $9,000 $1,500
2005 $10,000 $2,000
2006 $10,000 $2,500
2007 $10,500 $2,500
2008 $10,500 $2,500
2009 $11,500 $2,500
2010 Indexed to Inflation Indexed to Inflation
Year Annual 401K Contribution Limits Catch-up Contribution ***
2002 $11,000 $1,000
2003 $12,000 $2,000
2004 $13,000 $3,000
2005 $14,000 $4,000
2006 $15,000 $5,000
2007 $15,500 $5,000
2008 $15,500 $5,000
2009 $16,500 $5,500
2010 Indexed to Inflation Indexed to Inflation
Year Annual 403B Contribution Limits Catch-up Contribution ***
2002 $11,000 $1,000
2003 $12,000 $2,000
2004 $13,000 $3,000
2005 $14,000 $4,000
2006 $15,000 $5,000
2007 $15,500 $5,000
2008 $15,500 $5,000
2009 $16,500 $5,500
2010 Indexed to Inflation Indexed to Inflation
Year Annual 457 Contribution Limits Catch-up Contribution ***
2002 $11,000 $1,000
2003 $12,000 $2,000
2004 $13,000 $3,000
2005 $14,000 $4,000
2006 $15,000 $5,000
2007 $15,500 $5,000
2008 $15,500 $5,000
2009 $16,500 $5,500
Year SEP Contribution Limits MAX Considered Compensation
2002 $40,000 $200,000
2003 $40,000 $200,000
2004 $41,000 $205,000
2005 $42,000 $210,000
2006 $44,000 $220,000
2007 $45,000 $225,000
2008 $46,000 $230,000
2009 $49,000 $245,000
2010
HOME TAX SERVICES BUSINESS SOLUTIONS TECHNOLOGY MANAGEMENT FIRM PROFILE SITEMAP
|
CONTACT INFORMATION: Kelan Roy, CPA MT
Cell Phone (214) 755-3108
|
Copyright © Kelanroycpa.com 2000-2009 All rights reserved.