The 2010 retirement plan contribution limits are important for retirement savers. Here are both the regular IRA and Roth IRA 2010 contribution limits, plus the income restrictions for Roth IRA contributions.
[Note: Make sure to check out this year's updates by reviewing the 2011 IRA Contribution Limits.]
2010 IRA Contribution Limits
The 2010 IRA contribution limits are unchanged. Since 2008, the limit you may contribute to a regular IRA has been $5,000. However, if you will be 50 or older by the end of the year, you can contribute an extra $1,000, for a $6,000 total contribution limit.
These limits apply to both regular and Roth IRAs. Although you may be eligible to contribute to both plans, your combined contribution to both accounts cannot exceed your above limit ($5,000 or $6,000).
2010 Deductible IRA Contribution Limits
2010 Roth IRA Income LimitsThere are maximum income limits for Roth IRA contributions. During 2010, married individuals who file jointly can contribute $5,000 ($6,000 if 50 or older) to a Roth IRA only if their modified adjusted gross income (MAGI) is below $167,000. If their MAGI is between $167,000 and $177,000, then they can contribute some amount less than their full limit. If their income exceeds $177,000, they are not eligible to contribute to a Roth IRA for 2010. These numbers increased by $1,000 from 2009. In 2008, this phase-out range was $159,000 to $169,000.
For single individuals, the Roth IRA phase-out limit is lower: $105,000 to $120,000 for 2010. While 2009's numbers were the same as 2010's, a single individual's income restriction was between $101,000 and $116,000 during 2008.
2010 Roth Conversion Income Limitations
During 2010, the opportunity to convert a regular IRA to a Roth IRA is available to all taxpayers regardless of income. Previously, a conversion was only available to those who had a modified adjusted gross income of $100,000 or less.