#4 – Know the Increased Limits for your 2009 Retirement Plans
401k’s, 403B’s, IRAs, etc. are some of the best tax advantages available to most of us.
Although the limits for IRAs did not increase from 2008 to 2009, the new year has brought changes to the limits for 401k, 403b and 457 programs.
These increases will allow you to put even more money into tax-advantaged accounts.
In addition, if you turn 50 in 2009, you are eligible to increase your annual contributions for IRA, 401k, 403b and 457 accounts.
Finally, if your company offers a match in any of these programs, make sure that you contribute enough to get the maximum match.
The new limits for 2009 are shown below:
IRA Contribution Limits – 2009
Age 49 & below: $5,000 (no change from last year)
Age 50 & above: $6,000 (no change from last year)
401k, 403b, 457 Contribution Limits – 2009
Age 49 & below: $16,500 (increase of $1000)
Age 50 & above: $22,000 (increase of $1500)