Start planning! The IRS just released the 2010 Roth IRA limits and Roth 401k contribution limits.
The 401k limits and IRA limits will remain the same in 2010. I highlight the Roth IRA and the Roth 401k because they are my favorite retirement plans; limits for traditional 401ks and IRAs will also remain unchanged in 2010.
2010 Contributions
Here are the contribution limits for each:
|
2010 Roth 401k Contributions |
|
|
Maximum |
$ 16,500 |
|
Catch-up > 50 years old |
$ 5,500 |
|
|
|
|
|
|
2010 Roth IRA Contributions |
|
|
Maximum |
$ 5,000 |
|
Catch-up 50 and over |
$ 1,000 |
You can make your 2010 contributions as early as January 2 for the whole year. If you contribute 2010 Roth IRA money between January 2 and April 15, be sure to designate calendar year 2010 if you have already contributed the maximum for 2009.
If you aren’t eligible for a Roth IRA, you can take advantage of the special 2010 Roth Conversion Rules to convert some of your IRA money to a Roth IRA.
Transfer your IRA to Scottrade and stop paying fees. Whether your account is Traditional, Roth, SEP or Rollover, you won’t pay set-up, annual, custodial, inactivity or closing fees with Scottrade. Open a No-Fee IRA now!
2009 Contributions
You can still make 2009 contributions before the end of the year for your 401k. 2009 IRA contributions can be made until April 15, 2010.
See the 2009 Roth 401k and Roth IRA Limits for eligible contributions.
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Thanks for providing this info, it’s much easier to get the info here than searching for it on the IRS website. I didn’t really expect anything to change between this year and next year.
Yeah the $1000 increase for 401(k)s from last year was quite a jump, so no changes this year isn’t a surprise. HSA limits also went up $50 to $3050, but its triple-tax advantages continue to be underrated.
Thanks for the info! I am one of those people who like to make their Roth IRA contributions early but I had no idea you could do it as early as Jan. 2nd!
It’s good news that they haven;t lowered the limits as some reports were suggesting
I have a question (probably a dumb one!). My company offers both Traditional and Roth 401K plans. I believe I have the ability to have BOTH. Can you please confirm that is possible? Also, does the $16,500 limit apply to them collectively, or could I contribute 16,500 to each of them for a total of 33K?
Cris, you can have both but yes the $16,500 limit applies to them collectively (or “aggregately”). Roth 401ks are still rare, so take advantage of yours especially if you’re young, in the 25% or lower tax bracket, or if you want to save more. Technically, it takes more wages to stuff a Roth acct since taxes must be paid upfront.