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2008 and 2009 IRA, HSA, ESA and Employer Plan Limits

Last Updated April 4, 2009

 

 
Item
2009 Limit
2008 Limit
Comments
Traditional IRA and Roth IRA Participant contribution
$5,000
$5,000
An individual may contribution up to 100% of eligible compensation, providing the amount does not exceed $5,000
Traditional IRA and Roth IRA Catch-up contribution
$,1,000
$1,000
Individuals who are at least age 50 by the end of the year can contribute up to an additional $1,000, providing his or her compensation can cover the contribution
Salary deferral contributions to plans such as 401(k), federal thrift savings (TSP), 403(b) plan or governmental 457(b) plan
$16,500
$15,500
Maximum amount of salary deferral contributions that can be made by an individual for the year. This is a ‘per individual’ limit. Regardless of the number of 401(k), thrift savings plan, SIMPLE IRA, SIMPLE 401(k) or 403(b) plans in which the individual participates, the aggregate salary deferral contributions for the year cannot exceed $15,500 + catch-up contributions for 2008 and $16,500 for 2009. Contributions to 457(b) plans are separate. Therefore, if someone participates in a 457(b) plan and also participates in a 403(b) plan [for example], he/she could make salary deferral contributions of up to $16,500 to each (total $33,000) + catch-up of $5,500 to each (total $44,000) for 2009.
Catch-up contribution to 401(k) , 403(b)  and 457(b) plans
$5,500
$5,000
Maximum amount of catch-up contributions that can be made for the year. 457(b) catch-up is determined separately from the other plans
SIMPLE IRA and SIMPLE 401(k) Salary deferral
$11,500
$10,500
Maximum amount of salary deferral contributions that can be made to a SIMPLE IRA or SIMPLE 401(k) for the year
Catch-up contribution limit for SIMPLE IRAs and SIMPLE 401(k)s
$2,500
$2,500
Maximum amount of catch-up contributions that can be made to a SIMPLE IRA or SIMPLE 401(k) for the year
$49,000
$46,000
Maximum dollar amount that can be added to a participant’s account for the year. This applies on a per-employer basis. Therefore, if an individual works for two separate employers, that individual could receive $46,000 to each plan (total $92,000) + catch-up for 2008 and $98,000 + catch-up for 2009. For this to be possible, the employers must not be part of a controlled group or affiliated service group.
$195,000
$185,000
Maximum benefit payable annually in the form of a straight life annuity under a defined benefit plan
$245,000
$230,000
The maximum amount of compensation that can be taken into account when computing plan contributions and benefits. For SIMPLE IRAs, this cap applies only to non-elective contributions.
Minimum SEP compensation
$550
$500
Employees who earn at least $500 for 2008 or $550 for 2009 must share in SEP contributions for the year, providing they meet the other eligibility requirements 
Dollar limitation for defining a key employee
$160,000
$150,000
A plan is considered to be top-heavy if more than 60% of assets under the plan are owned by key-employees
Dollar limitation for defining highly compensated employee (HCE)
$110,000
$105,000
Nondiscrimination testing is required to be performed for qualified plans to ensure benefits are not discriminately skewed in favor of highly compensated employees
$106,800
$102,000
The maximum compensation on which social security contributions are based.
Social security Quarter of Coverage
$1,090
 
$1,050
 
Earnings needed to earn one Social Security credit
 
Social security Tax Rate for employees
 7.65%
 7.65%
The 7.65% tax rate is the combined rate for Social Security and Medicare.  The Social Security portion (OASDI) is 6.20% on earnings up to the applicable taxable maximum amount (see below).  The Medicare portion (HI) is 1.45% on all earnings.
Social security Tax Rate for employers
15.30%
15.30%

 

 

Savers Credit Limit
2009 Thresholds
Credit Rate
Married and files a joint return
Files as head of household
Other category of filers
Over
Not Over
Over
Not Over
Over
Not Over
50%
$0.00
$33,000
$0.00
$24,750
$0.00
$16,500
20%
$33,000
$36,000
$24,750
$27,000
$16,500
$18,000
10%
$36,000
$55,500
$27,000
$41,625
$18,000
$27,750
0%
$55,500
 
$41,625
 
$27,750
 
2008 Thresholds
Credit Rate
Married and files a joint return
Files as head of household
Other category of filers
 
Over
Not Over
Over
Not Over
Over
Not Over
50%
$0.00
$32,000
$0.00
$24,000
$0.00
$16,000
20%
$32,000
$34,500
$24,000
$25,875
$16,000
$17,250
10%
$34,500
$53,000
$25,875
$39,750
$17,250
$26,500
0%
$53,000
 
$39,750
 
$26,500
 

 

 

 
Roth IRA Contributions Eligibility Limits
Tax Filing Status
2009 MAGI
2008 MAGI
Allowed contribution 
Single
$105,000 or less
$101,000 or less
100%
$105,000  - $120,000
$101,000 - $116,000
Partial
$120,000  or more
$116,000
None
Married filing jointly
$166,000 or less
$159,000 or less
100%
$166,000 -$176,000
$159,000 - $169,000
Partial
$176,000 or more
$169,000 or more
None
Married filing separately
Less than $10,000
Less than $10,000
Partial
$10,000 or more
$10,000 or more
None
 
Traditional IRA Deductibility
Tax Filing Status
2009 MAGI
2008 MAGI
Allowed deduction
Single
$55,000 or less
$53,000 or less
100%
$55,000 - $65,000
$53,000 - $63,000
Partial
$65,000 or more
$63,000 or more
None
Married filing jointly or a qualifying widower, and active
$89,000 or less
$85,000 or less
100%
$89,000- $109,000
$85,000 - $105,000
Partial
$109,000 or more
$105,000 or more
None
Married filing jointly. Not active, but spouse is active
$166,000 or less
$159,000 or less
100%
$166,000 - $176,000
$159,000-$169,000
Partial
$176,000 or more
$169,000 or more
None
Married filing separately
Less than $10,000
Less than $10,000
Partial
$10,000 or more
$10,000 or more
None
 
 
 
HSA Limits
 
2008
2009
The maximum annual HSA contribution for an eligible individual with self-only coverage
$2,900
$3,000
Family coverage
$5,800
$5,950
Catch up contributions for individuals who are 55 or older
$900
$1,000
Maximum annual out-of-pocket amounts for HDHP self-coverage increase
$5,600
$5,800
Maximum annual out-of-pocket amount for HDHP family coverage
$11,200
$11,600
Minimum Deductible Amounts for HSA-Compatible HDHPs for self-only coverage
$ 1,100
$1,150
Minimum Deductible Amounts for HSA-Compatible HDHPs for family coverage.
$2,200
$2,300
 

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