2009 Retirement Plan Limits
If you are saving for retirement, and you probably should be, you need to be aware of the maximum dollar limit that is attached to your particular type of retirement account(s). This is important to know because you can only contribute so much money to each type of account during a given year. To go along with this, the amount that you contribute will have an effect on your taxes as well.
Below are some of the most common retirement plan limits for 2009:
SEP IRA: $49,000
SIMPLE IRA: $11,500 or $14,000 if 50 or older
Roth or Traditional IRA: $5,000 or $6,000 if 50 or older
457 plan: $16,500 or $22,000 if 50 or older
401(k) plan: $16,500 or $22,000 if 50 or older
403(b) plan: $16,500 or $22,000 if 50 or older
Defined Contribution Pension: $49,000
Defined Benefit Pension: $195,000
It is important to note that you can fund both a Roth and Traditional IRA but the total contribution cannot exceed $5,000 (or $6,000 if 50 or older) combined.
As you know, the IRS changes the retirement plan limits every year. What you were allowed to contribute last year may not be the same this time around. And when 2010 arrives it is safe to say that there will be new changes to keep in mind.
There is a good chance that you invest in one of the retirement plans listed above. If so, you should know the limits and what effect your contributions will have on your tax situation.
