Accounting Top News
Retirement Savings Plan Limits for 2009
Maximizing your retirement savings is a critical goal for an individual's financial plan. Review of your financial retirement plan should be completed annually allowing for maximum savings. Each year, the IRS announces the cost of living adjustments and limitation for retirement savings plans.
The following is a list of a few retirement plans and the contribution limitations for 2009.
|
Retirement Plan
|
2008
|
2009
|
|
|
Savings Incentive Match Plans
(SIMPLE)
|
|
|
Employee Contribution Limits
|
$10,500
|
$11,500
|
|
|
Catch Up Limits for age 50 &
older
|
$2,500
|
$2,500
|
|
|
Employer contributions remains
the same at 3% match or 2% non-elective contribution
|
|
|
401(k) Elective Deferral Limits
|
|
|
401(k) Contributions
|
$15,500
|
$16,500
|
|
|
Catch Up Limits for age 50 &
older
|
$5,000
|
$5,500
|
|
|
Annual Compensation Limits
|
$230,000
|
$245,000
|
|
|
Defined Contribution Plans
|
|
|
Maximum contribution limits
|
$46,000
|
$49,000
|
|
|
Individual Retirement Accounts
(IRA)
|
|
|
Contribution if not a participant
in another plan
|
$5,000
|
$5,000
|
|
|
Catch Up Limits for age 50 &
older
|
$1,000
|
$1,000
|
|
|
If a participant in another plan,
the following phase out limits apply:
|
|
|
Single AGI
|
$53,001-63,000
|
$55,001-65,000
|
|
|
Married AGI Phase Out
|
$85,001-105,000
|
$89,001-109,000
|
|
|
