Today we’re continuing our look at what’s new in estimated taxes for 2009. The topic of the day is retirement savings plans – one of the more mainstream topics we’ll cover in this series.
I’ll share with you the highlights. If you need more specific info, I recommend you peruse IRS Publication 590 (PDF). That’s the best resource for this topic.
According to the IRS:
IRA Deduction Expanded: You may be able to take an IRA deduction if you were covered by a retirement plan at work and your 2009 modified AGI is less than $65,000 ($109,000 if married filing jointly or a qualifying widow(er)). If your spouse was covered by a retirement plan but you were not, you may be able to take an IRA deduction if your modified AGI is less than $176,000.
Elective salary deferrals: The maximum amount you can defer under all plans generally is limited to $16,500 ($11,500 if you have only SIMPLE plans; $19,500 for section 403(b) plans if you qualify for the 15-year rule). The catch-up contribution limit for individuals age 50 or older at the end of the year is increased to $5,500 (except for section 401(k)(11) plans and SIMPLE plans, for which this limit remains unchanged).
Retirement savings contributions credit (saver’s credit): For 2009, the income limits have increased and you may be able to claim this credit if your modified AGI is not more than $27,750 ($55,500 if married filing jointly, $41,625 if head of household).
Temporary waiver of certain required minimum distribution rules: No minimum distribution is required from your IRA or employer-provided qualified retirement plan for 2009.
