The 2009 retirement plan contribution limits are available. Here are the regular and Roth IRA 2009 contribution limits, plus the updated income restrictions for Roth IRA contributions.
2009 IRA Contribution Limits
The 2009 IRA contribution limits are unchanged. In both 2008 and 2009, the limit you may contribute is $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).
2009 Roth IRA Income Limits
While you can receive unlimited income and still be eligible to contribute to a regular IRA, the same is not true of a Roth IRA. For the year 2009, married individuals who file jointly can contribute $5,000 ($6,000 if 50 or older) to a Roth IRA if their modified adjusted gross income (MAGI) is below $166,000. If their MAGI is between $166,000 and $176,000, then they can contribute some amount less than their full limit. If their income exceeds $176,000, they are not eligible to contribute to a Roth IRA for 2009. In 2008, this phase-out range is $159,000 to $169,000.
For single individuals, this Roth IRA phase-out limit is lower: $105,000 to $120,000 for 2009. In 2008, a single individual’s income restriction is between $101,000 and $116,000.
2009 Roth Conversion Income Limitations
During 2008 and 2009, the opportunity to convert a regular IRA to a Roth IRA is only available to those who have a modified adjusted gross income of $100,000 or less. However, this income restriction is scheduled to be completely eliminated in 2010.
