Could your retirement nest egg use a boost?
This may be a good year tot increase your retirement plan contributions, thanks to the IRS’s inflation adjustments for 2009. Key changes include:
- Contribution limits for employer-sponsored 401(k) and 403(b) plans climb from $15,500 to $16,500. Catch-up contributions for individuals age 50 or over rise to $5,500, a $500 increase over 2008.
- The minimum contribution threshold for SEP (Simplified Employee Pension) plans increases from $500 to $550.
- Contribution limits for SIMPLE (Savings Incentive Match Plan for Employess of Small Employers) jump from $10,500 to $11,500.
- Contributions allowed for Roth IRAs will phase out for joint filers with incomes exceeding $166,000
- For those covered by retirement plan at work, deductions for contributions to traditional IRAs begin to phase out at $89,000