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CCH can assist you with stories, including interviews with CCH subject experts. Also, the 2010
CCH Whole Ball of Tax
is available in print. Please contact:
 
Leslie Bonacum
(847) 267-7153
mediahelp@cch.com
 
Neil Allen
(847) 267-2179
neil.allen@wolterskluwer.com

Visit the CCH Whole Ball of Tax site often as new releases and other updates will be posted throughout the tax season.

CCH provides special CCH Tax Briefings on key topics at: CCHGroup.com/Legislation/Briefings.

 
2010 CCH Whole Ball of Tax
Release (28) | Back to WBOT

2010 CCH Whole Ball of Tax

Contact:
Leslie Bonacum
, 847-267-7153, mediahelp@cch.com
Neil Allen, 847-267-2179, neil.allen@wolterskluwer.com

Retirement by the Numbers: Employer Plans, IRAs and the Saver's Credit

Starting in 2009, IRA contribution levels became subject to cost of living adjustments (COLAs). However, with no COLA change, the contributions remain the same for 2009 and 2010. Contributions to employer-sponsored programs already were subject to COLA and also remain unchanged. Allowable adjusted gross income parameters for traditional deductible IRAs rose slightly for single filers in 2009 and for couples contributing to Roth IRAs.

Also, a few changes were made to the income thresholds under the Saver’s Credit, which is a nonrefundable tax credit that allows lower- and middle-income retirement plan participants to use elective contributions to reduce their federal income tax on a dollar-for-dollar basis.

Employer-sponsored Programs

Retirement Vehicle

Maximum 2010
Employee Contribution (2009)

Catch-up Contributions

401(k), 457 and 403(b) plans

$16,500 – pre-tax dollars
(same for 2009)

$5,500
(same for 2009)

Roth 401(k) and 403(b) plans

$16,500 – after-tax dollars
(same for 2009)

$5,500
(same for 2009)

SIMPLE plans

$11,500 – pre-tax dollars
(same for 2009)

$2,500
(same for 2009)

SARSEP*
(Salary Reduction SEP)

$16,500 – pre-tax dollars
(same for 2009)

$5,500
(same for 2009)

 

IRAs**

Retirement
Vehicle

2010 Maximum Contribution Limits***

Catch-up Contributions

Adjusted Gross
Income (AGI) Restrictions

Traditional Deductible IRA

$5,000
(same for 2009)

$1,000
(same for 2009)

For active participants in employer provided plan:

Single filers: under $56,000 phasing out completely at $66,000 (under $55,000; phasing out completely at $65,000 for 2009)

Married, filing jointly: under $89,000 phasing out completely at $109,000 (same for 2009)

Traditional Nondeductible IRA

$5,000
(same for 2009)

$1,000

N/A

Roth IRA Nondeductible

$5,000
(same for 2009)

$1,000
(same for 2009)

Single filers: under $105,000 phasing out completely at $120,000 (same for 2009)

Married, filing jointly: under $167,000 phasing out completely at $177,000 (under $166,000; phasing out completely at $176,000 for 2008)

* SARSEPs must be established prior to January 1, 1997. The maximum contribution and catch-up amounts are the same as for 401(k), 457 and 403(b) plans.

** Individuals have until April 15, 2010, to make contributions to their IRAs for 2009.

*** Subject to COLAs starting in 2010.

 

Saver’s Credit****

Retirement
Vehicle

2010 Maximum Credit

Adjusted Gross
Income (AGI) Restrictions

IRAs, Roth IRAs, SIMPLE Plans, 401(k)s and other qualified retirement plans

$1,000 for single filers

$2,000 for joint filers

(same for 2009)

 

Single filers: $27,750 or less (same for 2009)

Head of household filers: $41,625 or less (same for 2009)

Married, filing jointly: $55,500 or less (same for 2009)

**** Depending on AGI, the credit ranges from 10 percent to 50 percent with lower income taxpayers being eligible for a higher credit. For example, a married taxpayer filing jointly with an AGI of $33,500 or less making a $2,000 retirement plan contribution in 2010 could be eligible for a 50-percent credit, or $1,000. By contrast, if that same taxpayer had an AGI between $33,501 and $36,000, she would be eligible for a 20-percent credit, or $400; an AGI between $36,001 and $55,500 would make that same taxpayer eligible for a 10-percent credit, or $200.

Source: CCH, 2010

Permission for use granted.

 

       


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