Reference: IRS ruling # IR-2009-94, Oct. 15, 2009, if you still are working and have earned income:
"...The limitations [i.e. 401k plan; 403(b); TSP] ... will remain unchanged for 2010. This is because the cost-of-living index for the quarter ended September 30, 2009, is less than the cost-of-living index for the quarter ended September 30, 2008, and, following the procedures under the Social Security Act for adjusting benefit amounts, any decline in the applicable index cannot result in a reduced limitation..."
(1) 401k (403b and TSP) plan contribution limit remains at $16,500 (if under age 50 anytime in 2010)
(2) 401k (403b and TSP) plan contribution limit remains at $22,000 (includes the $5,500 catch-up provision if age 50 or older anytime in 2010)
Other information related to limitations are:
(3) Highly compensated employee remains unchanged at $110,000 (Used to determine anti-discrimination qualifications for some plans, like FSA's)
(4) The definition of key employee in a top-heavy plan remains unchanged at $160,000 (which could limit your ability to contribute the maximum)
For personal ROTH IRA's, here is some additional information:
The adjusted gross income limitation...for determining the maximum Roth IRA contribution for married taxpayers filing a joint return or for taxpayers filing as a qualifying widow(er) is increased from $166,000 to $167,000 (start of the phase-out).
The adjusted gross income limitation ... for all other taxpayers (other than married taxpayers filing separate returns) remains unchanged at $105,000 (Start of the phase-out).
Making contributions is different from converting so...
for married couples, the the income limitation increased slightly but the $100,000 income limitation to convert Traditional IRA's to ROTH IRA's has been suspended in 2010.
This makes for some interesting planning opportunities since the tax due can be paid over years 2011 and 2012 but you have to "run the numbers".
An Introduction
Hi. Welcome to BourGroup and my blog. Phil
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.