Contribution Limits
Retirement Plan Contribution Limits
How much can I contribute to my IRA? What are the limits on 401(k) and education savings accounts? We can help you with these important questions and more. If the answer is not listed here, contact us with your questions. We can recommend the best strategies to meet your financial goals.
Traditional and Roth IRA contribution limits
| Year |
Age 49 and below |
Age 50 and above |
| 2008 |
$5,000 |
$6,000 |
| 2009 |
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2007 Phase-out of Roth IRA Contribution Eligibility
| Filing Status |
Modified Adjusted Gross Income (MAGI) |
| Single |
$99,000 - $114,000 |
| Married, filing jointly |
$156,000 - $166,000 |
| Married, filing separately |
$0 - $10,000 | No Roth conversion if MAGI exceeds $100,000 or if married, filing separately.
2007 SEP IRA Contribution Limits
| SEP Contribution: up to 25% of compensation (limit of $45,000) |
2007 SIMPLE IRA Contribution Limits
| SIMPLE Elective Deferral (under age 50): |
$10,500 |
| SIMPLE Elective Deferral (age 50 & older): |
$13,000 |
2007 Individual 401(k) Contribution Limits
| Employer Contribution: |
up to 25% of compensation |
| Employee Salary Deferral (under age 50): |
$15,500 |
| Employee Salary Deferral (age 50 & older): |
$20,500 |
| Total Employer & Employee Additions (under age 50): |
$45,000 |
| Total Employer & Employee Additions (age 50 & older): |
$50,000 |
2007 College Saving Accounts Contribution Limits
| 529 Plans |
$250,000 per beneficiary.
No income limits. Anyone can contribute.
|
| Coverdell Education Savings Account |
$2,000 per year per beneficiary.
Ability to contribute is phased out for married couples with incomes between $190,000 and $220,000 and for individuals with incomes between $85,000 and $110,000. |
| UGMA/UTMA |
No limits; the first $12,000 per child each year is free of gift tax consequences ($24,000 for married couples) |
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