2010 Limits for Retirement Plans

401(k) Plans
Elective deferral limit is $16,500 (same as 2009)
If age 50 or older on December 31, 2010, the limit is $22,000 (same as 2009)

IRA Contribution and Deduction Limit
Contribution limit for a traditional IRA and Roth IRA remains the lesser of $5,000 or taxable compensation.
If the taxpayer is 50 years of age or older the limit remains the lesser of $6,000 or taxable compensation.

Modified AGI Limit for Traditional IRAs
If a taxpayer is covered by a retirement plan at work, the deduction will be phased out if the modified AGI is between:

• $89,000 - $109,000 for Married Filing Joint (MFJ) or Qualifying Widower (QW) - same as 2009
• $56,000 - $66,000 for Single or Head of Household (HH) or Married Filing Separately and did not live with spouse at any time during the year - $55,000 to $65,000 in 2009
• $0 - $10,000 for Married Filing Separately (MFS) who lived with spouse at any time during 2010

Modified AGI Limit for Traditional IRAs
The limit for the spouse of a covered employee is:

• $167,000 - $177,000 for MFJ (up from $166,000 - $176,000)
• $0 - $10,000 for MFS (same as 2009)

Roth IRA Contribution Limits
The Roth phase out range increases to:

• $167,000 - $177,000 (up from $166,000 - $176,000) for MFJ & QW
• $105,000 - $120,000 (same) for single, HH and MFS not living with spouse during the year
• $0 - $10,000 (same) for MFS who lived with spouse at any time during 2010