Other than the removal of the income limitation for Roth IRA conversions this year, 2010 is not much different than 2009 in terms of IRA maximums. Like 2009, the maximum you may contribute to your Traditional and Roth IRAs combined is $5,000. If you reach age 50 this year, you may contribute an extra $1,000 for a total of $6,000. This maximum applies to the combined contributions between your Traditional and Roth IRAs.
The income limitations for contributing to a Roth IRA have changed slightly this year for taxpayers who are married and file jointly. For these filers, if the modified adjusted gross income (MAGI) on the tax return is above $167,000, the Roth IRA maximum begins to reduce to zero, phasing out completely with a MAGI of $177,000. Those amounts have increased by $1,000 since 2009. For taxpayers who file as single, the phase-out begins at a MAGI of $105,000 and the benefit is fully eliminated with a MAGI of $120,000.
These income limitations do not apply for conversions from Traditional IRAs to Roth IRAs.
If you haven’t contributed the full amount to your 2009 IRA, there is still time to do so. You have until your tax filing deadline to complete the contribution. For the past few years, I’ve waited until I file my taxes to contribute to my IRA. For us, the 2009 contribution limits apply.
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Traditional and Roth IRA Contribution Limits for 2010
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