401K & Roth IRA Limits
| IRA Contribution Limits | ||
| Year | AGE 49 & BELOW | AGE 50 & ABOVE |
| 2002-2004 | $3,000 | $3,500 |
| 2005 | $4,000 | $4,500 |
| 2006-2007 | $4,000 | $5,000 |
| 2008 | $5,000 | $6,000 |
| 2009 | $5,000 | $6,000 |
| 2010 | Indexed to Inflation | Indexed to Inflation |
| Roth IRA Phase-Out Range & Limits | ||
| Year | Single | Married Filing Jointly |
| 2005 | $95,000 - $110,000 | $150,000 - $160,000 |
| 2006 | $95,000 - $110,000 | $150,000 - $160,000 |
| 2007 | $99,000 - $114,000 | $156,000 - $166,000 |
| 2008 | $101,000 - $116,000 | $159,000 - $169,000 |
| 2009 | $105,000 - $120,000 | $166,000 - $176,000 |
| 2010 | Rollover limit removal | Rollover limit removal |
| You can contribute to a Roth IRA if your income falls below the Roth limits. You're allowed a prorated contribution if your income falls within the "phase-out" range. If your income exceeds the income range you won't qualify for a Roth IRA contribution. | ||
| 401k Contribution Limits | ||
| Year | AGE 49 & BELOW | AGE 50 & ABOVE |
| 2005 | $14,000 | $18,000 |
| 2006 | $15,000 | $20,000 |
| 2007 | $15,500 | $20,500 |
| 2008 | $15,500 | $20,500 |
| 2009 | $16,500 | $22,000 |
| 2010 | Indexed to inflation | |
| Defined Contribution Plans, basic limits | ||
| Year | Max Dollar Allocation | Max Considered Compensation |
| 2005 | $42,000 | $210,000 |
| 2006 | $44,000 | $220,000 |
| 2007 | $45,000 | $225,000 |
| 2008 | $46,000 | $230,000 |
| 2009 | $49,000 | $245,000 |
| 2010 | ||
| The maximum amount that can be contributed to a defined contribution plan is 25% of an employee's compensation, which is capped at a maximum, per above. | ||