The 401k elective deferral limits for 2010 are the same as the 2009 limits. For the 2010 Tax year you can contribute up to $16,500 to a traditional 401k and up to $11,500 to a SIMPLE 401k. If you are over 50 catch up contributions can be made to either plan in the amounts of $5,500 for traditional 401(k) and $2,500 for s SIMPLE 401k.
2010 IRA Contribution Limits of $5,000 apply to both the traditional IRA and Roth IRA for anyone under the age of 50. If you are over 50 you can contribute an additional $1,000 for a total of $6,000.It is important to remember the limits are combined across both account types so if you are under 50 and have contributed $3,000 to a Roth IRA you have only $2,000 left to contribute to either your Roth or Traditional IRA. You can only contribute up to your allowed maximum to a Roth IRA which is $5,000 for most people. You can contribute more than the maximum to a traditional IRA however you can only deduct up to your allowed limit.
Your maximum allowed contribution to a Roth IRA and your maximum deductible contribution to a Traditional IRA are phased out based on your income. I have included the IRS tables outlining these phase outs below. Make sure you are looking at the correct table as traditional IRA rules are different if you are offered a 401k plan through your employer.
Traditional IRA if you ARE covered under a qualified employer plan (i.e. 401k)
| Filing Status | Adjusted Gross Income(AGI) | Then you can take |
| Single or Head of Household | $56,000 or less | Full Deduction up to $5,000 if over 50 $6,000 |
| More than $56k but less than $66k | Partial deduction | |
| More the $66k | No Deduction | |
| Married Filing Jointly | $89,000 or less | Full Deduction up to $5,000 if over 50 $6,000 |
| More than $89k but less than $109k | Partial deduction | |
| $109k or more | No deduction | |
| Married filing separately | Less than $10,000 | Partial Deduction |
| $10,000 or more | No Deduction |
Traditional IRA if you are NOT covered by a qualified employer plan
| Filing Status | Adjusted Gross Income(AGI) | Then you can take |
| Single or Head of Household | Any Amount | Full Deduction up to $5,000 if over 50 $6,000 |
| Married Filing Jointly or separately where a spouse is NOT covered by an employer plan | Any Amount | Full Deduction up to $5,000 if over 50 $6,000 |
| Married filing jointly with a spouse who is covered by an employer plan | $167,000 or less | Full Deduction up to $5,000 if over 50 $6,000 |
| More than $167,000 but less than $177,000 | Partial Deduction | |
| $177,000.00 or more | No Deduction | |
| Married filing Separately with a spouse who is covered by an employer plan | Less than $10,000 | A partial deduction |
| $10,000 or more | No deduction |
Roth IRA Contributions
| Filing Status | Adjusted Gross Income(AGI) | Then you can contribute |
| Married filing jointly or qualified widow(er) | Less than $167,000 | up to $5,000 ($6,000 if over 50) |
| at least $167,000 but less than $177,000 | the amount is reduced | |
| $177,000 or more | You cannot contribute to a Roth IRA | |
| Married filing separately | Zero | Up To $5,000 |
| More than Zero but less than $10,000 | The amount is reduced | |
| $10,000 or more | You cannot contribute to a Roth IRA | |
| single, head of household | Less than $105,000 | Up To $5,000 |
| More than $105,000 but less than $120,000 | the amount is reduced | |
| $120,000 or more | You cannot contribute to a Roth IRA |
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