IRS has just published the contribution limits for retirement plans for 2009.
The maximum pre-tax contribution allowed to 401(k) and 403(b) accounts for 2009 is $16,500, which is $1000 more than it was for 2008. Those who are over 50 are allowed to contribute an additional $5,500 in "catch-up" contributions. This is $500 more than it was for 2008.
Note that this is the maximum allowed by IRS. Your individual plan may have additional restrictions that prevent you from contributing the full amount. It is important to check with your plan administrator.
For IRAs (both Traditional and Roth), the contribution limit is the same as for 2008 ($5,000). The contribution limit for those over 50 is also the same as before ($6,000).
To be eligible to fully contribute to a Roth IRA, your adjusted gross income (AGI) must be under $166,000 (increased from $159,000 for 2008) for taxpayers filing a joint return. For single taxpayers, the AGI limit is increased from $101,000 to $105,000.
Related links:
- IRS announcement on contribution limits for 2009
