IRA & Other Qualified Plans and Estate Tax Tables
|
Year
|
Under age 50
|
Age 50+
|
|
2010
|
$5,000
|
$6,000
|
|
Year
|
If your tax status is…
|
…you can contribute to a Roth IRA if your
modified adjusted gross income is less than…
|
|
2010
|
Married, filing jointly
|
$177,000
|
|
2010
|
Single
|
$120,000
|
|
Traditional IRA Deductions
|
If you are covered by a retirement plan at work, use this IRS table to determine if you can deduct your 2010 Traditional IRA contribution:
|
If Your Filing Status Is...
|
And Your Modified AGI Is...
|
Then You Can Take...
|
|
Single, head of household
|
$56,000 or less
|
a full deduction up to the amount of your contribution limit.
|
|
more than $56,000 but less than $66,000
|
a partial deduction.
|
|
$66,000 or more
|
no deduction.
|
|
Married filing jointly or qualifying widow(er)
|
$89,000 or less
|
a full deduction up to the amount of your contribution limit.
|
|
more than $89,000 but less than $109,000
|
a partial deduction.
|
|
$109,000 or more
|
no deduction.
|
|
Married filing separately
|
less than $10,000
|
a partial deduction.
|
|
$10,000 or more
|
no deduction.
|
|
If you file separately and did not live with your spouse at any time during the year, your IRA deduction is determined under the "Single" filing status.
|
If you are not covered by a retirement plan at work or one isn’t offered, use this IRS table to determine if you can deduct your 2010 Traditional IRA contribution:
|
If Your Filing Status Is...
|
And Your Modified AGI Is...
|
Then You Can Take...
|
|
Single, head of household, or qualifying widow(er)
|
any amount
|
a full deduction up to the amount of your contribution limit.
|
|
Married filing jointly or separately with a spouse who is not covered by a plan at work
|
any amount
|
a full deduction up to the amount of your contribution limit.
|
|
Married filing jointly with a spouse who is covered by a plan at work
|
$167,000 or less
|
a full deduction up to the amount of your contribution limit.
|
|
more than $167,000 but less than $177,000
|
a partial deduction.
|
|
$177,000 or more
|
no deduction.
|
|
Married filing separately with a spouse who is covered by a plan at work
|
less than $10,000
|
a partial deduction.
|
|
$10,000 or more
|
no deduction.
|
|
|
If you file separately and did not live with your spouse at any time during the year, your IRA deduction is determined under the "Single" filing status.
|
|
Roth IRA Conversion Eligibility
|
|
Year
|
Eligibility
|
|
2009
|
Only if your modified adjusted gross income is $100,000 or less
|
|
2010
|
Anyone can
|
SIMPLE IRA Contribution Limits for Elective Deferrals:
|
Year
|
|
Maximum Contribution
|
Maximum Including Catch-Up Provisions*
|
|
2010
|
|
$11,500
|
$2,500
|
*Those who reach age 50, by the end of the year can contribute an additional $2,500.
Contribution Limits for Company Retirement Plans: (Including 401(k)s, 403(b)s, and Section 457 Plans)
|
Year
|
|
Maximum Contribution
|
Maximum Including Catch-Up Provisions*
|
|
2010
|
|
$16,500
|
$22,00
|
*Those who reach age 50, by the end of the year can contribute an additional $5,500. Note: The above Contribution limits also apply to Roth 401-K's or DRAC's (Designated Roth Accounts). Employees can elect to make regular contributions, Roth contributions or a combination of both. However, the combined total contribution, Can Not exceed the maximum.
|
SEP IRA Contribution Levels
|
Here’s what you can contribute to a SEP IRA:
|
Year
|
Status
|
Maximum Contribution
|
Deductible
|
|
2010
|
W-2 Income
|
Up to 25% of compensation, but no more than $49,000.
|
Yes (100%)
|
|
2010
|
Self Employed
|
Up to 20% of compensation, but no more than $49,000.
|
Yes (100%)
|
|
Federal Estate Tax Levels
|
At death, a surviving spouse’s estate will owe estate taxes on the net value that exceeds the annual exemption:
|
Year
|
Exempt from Tax
|
Estate-Tax Rate
|
|
2010
|
Currently Unlimited
|
0%
|
While the net value of a surviving spouse’s estate may fall below the federal exemption level, it still may wind up owing state estate tax if it exceeds the following exemption level:
|
State
|
Exemption Amount
|
|
Connecticut
|
$2,000,000
|
|
Delaware
|
$3,500,000
|
|
District of Columbia
|
$1,000,000
|
|
Illinois
|
$2,000,000
|
|
Kansas
|
$1,000,000
|
|
Maine
|
$1,000,000
|
|
Maryland
|
$1,000,000
|
|
Massachusetts
|
$1,000,000
|
|
Minnesota
|
$1,000,000
|
|
New Jersey
|
$675,000
|
|
New York
|
$1,000,000
|
|
North Carolina
|
$3,500,000
|
|
Ohio
|
$338,333
|
|
Oklahoma
|
$3,000,000
|
|
Oregon
|
$1,000,000
|
|
Rhode Island
|
$675,000
|
|
Tennessee
|
$1,000,000
|
|
Vermont
|
$2,000,000
|
|
Washington
|
$2,000,000
|
|
Generation-Skipping Transfer (GST) Tax
|
|
Year
|
Exempt from tax
|
GST tax rate
|
|
|
2010
|
Currently unlimited
|
0%
|
|
|
Annual Gift Tax Exclusion
|
You may give the following amount to an individual, free of gift tax:
|
Year
|
Annual Exclusion
|
|
2010
|
$13,000
|
IRA Life Expectancy Tables
When owners of a Traditional IRA reach age 70 ½, they are required to take annual minimum distributions. The amount changes each year. Beneficiaries also have required distributions. The tables and their instructions can be found at the following links.
|
IRS Joint Life Expectancy Tables
|
|
Single Life Expectancy Table for Beneficiaries
|
All Contribution limits and other contribution guidelines received courtesy of Ed Slott, CPA at www.IRAhelp.com
The hyperlinks included on this page provided as a convenience and are for informational purposes only and are not part of Royal Alliance Associates, Inc. The link to outside web sites does not mean that Royal Alliance Associates, Inc., endorses or accepts any responsibility for the content or use of the web site. Royal Alliance Associates, Inc., does not guarantee the sequence, accuracy or completeness of the data or other information appearing on the linked pages. The company assumes no liability for any inaccuracies, errors or omissions in or from any data or other information provided on the pages, or for any actions taken in reliance on any such data or information.
This information is not intended to be a substitute for specific individualized tax, legal or investment planning advice as individual situations will vary. Although the information has been gathered from sources believed to be reliable, it cannot be guaranteed and the accuracy of the information should be independently verified.
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