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 |
Annual addition dollar limit for defined contribution plans | $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. |
Annual benefit dollar limit for defined benefit plans | $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 |
