IRA & Other Qualified Plan Contribution Limitations

 

New Increased maximum Retirement Plan Contribution Limits!

New IRA and Roth IRA Contribution Limits:    
Year
2002
2003
2004
2005
2006
2007
2008
Maximum Contribution
3,000
3,000
3,000
4,000
4,000
4,000
5,000
Maximum Including Catch-Up Provisions*
3,500
3,500
3,500
4,500
5,000
5,000
6,000

*Those who reach age 50 by the end of the year can contribute an additional $500 in
2002-2005 and an additional $1,000 for 2006 and each subsequent year.
 
New SIMPLE IRA Contribution Limits for Elective Deferrals:           
Year
2002
2003
2004
2005
2006
2007
2008
Maximum Contribution
7,000
7,000
8,000
9,000
10,000
10,500
10,500
Maximum Including Catch-Up Provisions*
 7,500
 9,000
10,500
12,000
12,500
13,000
13,000
 

 

The catch up contributions are also eligible for employer matching contributions.

New Contribution Limits for Company Retirement Plans:
(Including 401(k)s, 403(b)s, and Section 457 Plans) 
Year
2002
2003
2004
2005
2006
2007
2008
Maximum Contribution
11,000
12,000
13,000
14,000
15,000
15,500
15,500
Maximum Including Catch-Up Provisions*
12,000
14,000
16,000
18,000
20,000
20,500
20,500

*Those who reach age 50, by the end of the year can contribute an additional $1,000 in 2002, an additional $2,000 in 2003, $3,000 in 2004, $4,000 in 2005 and $5,000 in 2006 and each subsequent year. 
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.
 
 
New SEP Contribution Limits:
2007 - The SEP limit for 2007 is 25% of up to $225,000 of compensation, limited to a maximum annual contribution $45,000. This $1,000 increase in the maximum from the 2006 amount also applies to Keoghs and Profit -Sharing Plans.
 
2008 -The SEP limit for 2008 is 25% of up to $230,000 of compensation, limited to a maximum annual contribution of $46,000. This $1,000 increase in the maximum from the 2007 amount also applies to Keoghs and Profit-Sharing Plans.
 
The catch-up contribution provisions do not apply to SEP - IRA's They still apply to the old SARSEPs in effect before 1997. No New SARSEP's were allowed after 1996..
 
SEP contributions can be made up to the due date of the return, including extensions. For example, a 2007 SEP contribution can be made up to April 15, 2008 or up to October 15, 2008, If you have filed a valid extension to October 15, 2008.
 
 
 2008 Federal, Estate & Gift Tax Exemption Amounts:
Estate Tax
Generation Skipping Tax
Gift Tax
Annual Gift Tax Exclusion
2,000,000
2,000,000
1,000,000
12,000

 

 

 
All Contribution limits and other contribution guidelines received courtesy of Ed Slott, CPA at www.IRAhelp.com