401K, 403B, IRA & Roth IRA Maximum Contributions

The IRS determines the 2011 maximum allowable retirement account contributions and nothing much has really changed since 2010.  A few of the numbers have budged a tiny little bit but since the Consumer Price Index shows minimal official inflation then the adjustments have been kept to a minimum. With the end of the year approaching now is a good time to check up where you are on your contributions and if their is any catching up you need to do before the year is out.  Here is the breakdown for 2011.

401K & 403B

The 2011 401K and 403B contributions are capped at $16,500 if you are under the age of 50.  Those at or over 50 years old in 2011 will be allowed an extra “catch up” contribution that maxes out at $22,000

IRA & Roth IRA

The contribution amount for IRA’s remain the same as in 2010 at $5000 for those under 50.  The over 50 “catch up” amount of a $1000 brings the over 50 cap to $6,000.

Roth IRA

Once thing that did increase in 2011 is the phaseout ranges for the Traditional and Roth IRA’s.  Married filing jointly can fully contribute to a Roth IRA with income up to $168,999.  The amount allowed to contribute begins to phase out at $169,000 and incomes over $179,000 can’t contribute.  For single and head of household the ranges are $107,000 and $122,000.

Traditional IRA

When it comes to a Traditional IRA you can deduct the amount you contributed if you meet certain criteria.

Covered By A Retirement Plan At Work

Married filing jointly couples can deduct the full amount of their contribution with an adjusted gross income (AGI) of $90,000.  Between $90,000 and $110,000 they are allowed a reduced deduction and after $110,000 there can be no deduction.

Single and head of household can take the full deduction with an AGI up to $56,000.  The phaseout period maxes out at $66,000.

NOT Covered By A Retirement Plan At Work

If you are single, head of household and qualified widow/widowers can deduct their full IRA contribution with no income phaseout.  Married couples can also deduct the full contribution amount with no limit UNLESS one spouse is covered by a retirement plan at work.  Should this be the case then they can deduct the full amount up to an AGI of $169,000.  Between $169,000 and $179,000 their is a phaseout period and then any incomes above that amount can not deduct any IRA contributions.

Hopefully this will help you as you determine your contribution amounts for 2011 to your retirement accounts. Being an active planner and preparer for your future will help to ensure a rewarding and dignified retirement.

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