Retirement Plan Contribution Limits 2008
Traditional and Roth IRA Contribution Limits
Regular contribution: $5,000
Taxpayers age 50 and over are eligible to make catch-up contribution of $1,000 in addition to the regular contribution of $5,000.
Eligibility to contribute to a Roth IRA is based on adjusted gross income (AGI), and is phased out at these levels in 2008:
| Married File Jointly |
$159,000 - $169,000 |
| Single and Head of Household |
$101,000 - $116,000 |
| Married Filed Separately |
$0 - $10,000 |
If your AGI is above the top of the range for your filing status, you are not able to contribute to a Roth IRA.
Some taxpayers are eligible to contribute to a deductible IRA. That means contributions reduce the taxpayer's current income tax liability. Eligibility depends on thte taxpayer's adjusted gross income, tax filing status and whether the taxpayer or spouse is covererd by an employer-sponsored retirement savings plan. Please contact Wales Investments for more information.
| Filing Status |
Modified AGI |
Deduction |
| Single and Head of Household |
$53,000 or less |
Full deduction |
| $53,001 - $63,000 |
Partial deduction |
| $63,001 or more |
No deduction |
| Married Filed Jointly |
$85,000 or less |
Full deduction |
| $85,001 - $105,000 |
Partial deduction |
| $105,001 or more |
No deduction |
| Married Filed Separately |
$0-$10,000 |
Partial deduction |
| $10,001 |
No deduction |
If the taxpayer is not covered by retirement plan, the AGI and deduction limits are:
| Filing Status |
Modified AGI |
Deduction |
| Single |
Any amount |
Full deduction |
| Married Filed Jointly (neither spouse is covered) |
Any amount |
Full deduction |
| Married Filed Jointly (either spouse is covered) |
$159,000 or less |
Full deduction |
| $159,001 - $169,00 |
Partial deduction |
| $169,001 or more |
No deduction |
Qualified Plans Contribution Limits
| Maximum elective deferral to retirement plans, i.e. 401(k), 403(b): |
$15,500 |
| Catch-up contribution for 401(k), 403(b), 457 and Roth 401(k): |
$5,000 |
| Maximum elective deferral to SIMPLE 401(k) plans : |
$10,500 |
| Catch-up contribution limits for SIMPLE plans: |
$2,500 |
| Maximum elective deferral to 457 Plans of tax exempt employers: |
$15,500 |
| Limit on annual additions to SEP Plans: |
$46,000 |
| Limit on annual additions to defined contribution plans |
$46,000 |
| Maximum annual compensation taken into account for contributions: |
$230,000 |
| Maximum elective deferral to Roth 401(k) plan (no income phase-out): |
$15,500 |
|
