IRS Announces 2009 IRA and Small Business Plan Contribution Limits

You Can Benefit From Increases for Small Business Plans and 401(k)s

Good news for those participating in SEP IRA, SIMPLE IRA, 401(k), or Solo 401(k) plans, the Internal Revenue Service (IRS) recently announced increases to contribution limits for those retirement plans – up to $54,500 depending on the plan and an individual’s eligibility.

Per the Internal Revenue Code each year the IRS must annually review contribution limits and adjusts them, if necessary, based on cost-of-living.

Effective January 1, 2009 the contribution limits and the modified adjusted gross income (MAGI) requirements to participate for various plans are listed below.

 

SEP (Simplified Employee Plan) IRA Limits
	2009	2008
Maximum contribution limit	$49,000	$46,000
Maximum considered compensation limit	$245,000	$230,000

 

SIMPLE (Savings Incentive Match Plan for Employers) IRA Limits
	2009	2008
Maximum contribution limit	$11,500	$10,500
Maximum contribution limit (over age 50)	$14,000	$13,000

 

401(k) Plan Limits - Including Solo 401(k)
2009	Employee	Employer	Total
Maximum contribution limit	$16,500	$32,500	$49,000
Maximum contribution limit (over age 50)	$22,000	$32,500	$54,500

 

401(k) Plan Limits - Including Solo 401(k)
2008	Employee	Employer	Total
Maximum contribution limit	$15,500	$30,500	$46,000
Maximum contribution limit (over age 50)	$20,500	$30,500	$51,000

 

Roth IRA
	2009	2008
Maximum contribution limit - NO CHANGE	$5,000	$5,000
Maximum contribution limit (over age 50) - NO CHANGE	$6,000	$6,000

 

Roth IRA - Modified Adjusted Gross Income Limits
	2009	2008
Roth MAGI filing single	$105,000 - $120,000	$101,000 - $116,000
Roth MAGI filing married jointly	$166,000 - $176,000	$159,000 - $169,000

 

Traditional IRA
	2009	2008
Maximum contribution limit - NO CHANGE	$5,000	$5,000
Maximum contribution limit (over age 50) - NO CHANGE	$6,000	$6,000

 

Health Savings Account Limits
2009	Contribution	Min. Deductible	Out-of-Pocket
Individual	$3,000 ($4,000 if age 55 - 65)	$1,150	$5,800
Family	$5,950 ($6,950 if age 55 - 65)	$2,300	$11,600

 

Health Savings Account Limits
2008	Contribution	Min. Deductible	Out-of-Pocket
Individual	$2,900 ($3,800 if age 55 - 65)	$1,100	$5,600
Family	$5,800 ($6,700 if age 55 - 65)	$2,200	$11,200