2010 Retirement Account Contribution Limits

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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