2009 Roth IRA Contribution Limits

What are the 2009 Roth IRA contribution limits?

If you make a contribution for the 2009 tax year, you need to know this information. Otherwise, you risk unexpected taxes, penalties, or both.

The contribution limits change on an annual basis, so if you're using the Internet for your research, make sure you're getting up to date information.

How can you be sure you're getting up to date information?

Go to the source itself...

The Internal Revenue Service.

IRS Publication 590 is updated as soon as information is available for the current tax year, so check the information you get against this government resource.

But, if you're reluctant to wade through the bureaucratic language in an IRS document, then just come to this site where the 2009 Roth IRA contribution limits are available in plain English...

2009 Roth IRA Contribution Limits

What are the 2009 Roth IRA contribution limits?

Your individual Roth IRA contribution limit varies according to...

• Your tax filing status
• Your income level
• Your age

So let's look at how each of those aspects impacts your annual contribution limit...

2009 Roth IRA Maximum Contribution

Unless you earn too much to qualify, the maximum Roth IRA contribution limits for 2009 are...

• $5,000 if you're under age 50
• $6,000 if you're over age 50

As a general rule, these are the maximum contribution limits. But keep in mind, there are always exceptions to the rule.

Nevertheless, these aren't the maximum limits for everyone.

Why?

Because your maximum 2009 Roth IRA contribution limit phases out as your income rises above the threshold for making the maximum contribution.

2009 Roth IRA Income Limits

Your ability to make a 2009 Roth IRA contribution, as well as the limit of that contribution, depend on your income level as related to your tax filing status.

To find out how much you're eligible to contribute in 2009, look for your tax filing status in the sub-headings below:

Married Filing Jointly

If you're married and filing a joint tax return, you can contribute a maximum of...

• $6,000 if you're over 50 and your combined earned income is $166,000 or less
• $5,000 if you're under 50 and your combined earned income is $166,000 or less
• $0 regardless of age if your combined earned income is more than $176,000

If your earned income is somewhere between $166,001 and $176,000, your 2009 contribution limit phases out.

For instance, if you're 48 years old with a combined income of $171,000, then your contribution limit is 50% of what it would be if you earned $166,000 or less.

Why?

Because $171,000 is the midpoint between $166,000 and $176,000, and the contribution limit phases out on a percentage basis related to where your income falls within that range.

So if your maximum contribution limit is $5,000 at $166,000 in earned income, it's $2,500 at $171,000 in earned income.

Likewise, if your maximum limit is $6,000 at $166,000, then it's $3,000 at $171,000.

Does that make sense?

If not, read Roth IRA Phase Out for more information.

Single, Head of Household, or Married Filing Separately (And Didn't Live With Your Spouse)

If you're single, head of household, or married filing separately (and didn't live with your spouse for any part of the year), you can contribute a maximum of...

• $6,000 if you're over 50 and your earned income is $105,000 or less
• $5,000 if you're under 50 and your earned income is $105,000 or less
• $0 regardless of age if your earned income is $120,000 or more

If your earned income is somewhere between $105,001 and $120,000, your 2009 contribution limit phases out.

The phase out provision is the same as for someone who is married and filing a joint tax return. Your contribution limit simply phases out on a percentage basis depending on where you income level falls within the $105,001 to $120,000 range.

For more information, read Roth IRA Phase Out.

Married Filing Separately (And Lived With Your Spouse)

If you're married filing separately, and...

You lived with your spouse for any part the year, you can contribute a maximum of...

• $6,000 if you're over 50 and your earned income is $0
• $5,000 if you're under 50 and your earned income is $0
• $0 regardless of age if your earned income is $10,000 or more

If your earned income is somewhere between $1 and $10,000, your 2009 contribution limit phases out.

The phase out provision is the same for everyone, regardless of tax filing status. Under the phase out rules, your contribution limit phases out on a percentage basis depending on where you income level falls within the $1 to $10,000 range.

For more information, read Roth IRA Phase Out.

Conclusion

The 2009 Roth IRA contribution limits are based on the following factors...

• Your tax filing status
• Your income level
• Your age

To find out how much you can contribute in 2009, compare your earned income to the allowable ranges for your given tax bracket.

Also, keep in mind that if you're over the age of 50, you're eligible to contribute more to your Roth IRA. Exactly how much depends on whether or not your income falls in the range where contributions phase out, or if you're eligible to make the maximum contribution.

If you're 50 years old or older, and you're eligible to make the maximum contribution, you can contribute up to $6,000. Otherwise, your contribution varies based on your phase out.

For people under the age of 50, the maximum contribution is $5,000. This also phases out as your income rises.

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