2009 Roth IRA Contribution Limits

With a new year comes a new limit for contributions, however 2009 will have the same contribution limits as 2008. This will be the first year that contribution limits will be based on inflation but 2009 will have the same limits as 2008.

For 2009, the contribution limit for Roth IRAs will be $5,000 for Age 49 and Below; $6,000 for Age 50 and Above (to reflect the “catch-Up amount).

Also, the phase-out ranges have been increased by $4,000 for Single filers and $7,000 for Married Filing Jointly. For single filers, ther ange is $105,000 to $120,000. For married filing jointly, the limit is $166,000 to $176,000. In 2010, the limit will be removed!

If you are getting a jump on 2009 contributions, remember to mark your contributions as 2009 Roth IRA contributions or your brokerage may be confused. If you don’t write anything, your brokerage will likely mark the contributions for 2009 but it’s better to be safe than sorry.