2010 IRA Contribution Limits
2010 IRA contribution limits were mostly unchanged
The 2010 retirement plan contribution limits are important for retirement savers. Here are both the regular IRA and Roth IRA 2010 contribution limits, plus the income restrictions for Roth IRA contributions.
IRA contribution limits have gradually increased since their original introduction back in 1974 (Roth IRAs were first introduced in 1997). The 2010 retirement plan contribution limits experienced a few updates since the 2009 tax year. Here are the regular and Roth IRA 2010 contribution limits, plus the updated income restrictions for Roth IRA contributions.
[Note: Make sure to check out this year's updates by reviewing the 2016 IRA contribution limits here.]
2010 IRA Contribution Limits
The 2010 IRA contribution limits are unchanged. Since 2008, the limit you may contribute to a regular IRA has been $5,000. However, if you will be 50 or older by the end of the year, you can contribute an extra $1,000, for a $6,000 total contribution limit.
These limits apply to both regular and Roth IRAs. Although you may be eligible to contribute to both plans, your combined contribution to both accounts cannot exceed your above limit ($5,000 or $6,000).
2010 Deductible IRA Contribution Limits
Although there is no maximum income restriction for contributing to a regular IRA, there are limits to deducting regular IRA contributions.
Additional Note: There have been minor changes to IRA contribution since 2009. In 2013, the maximum IRA contribution limit was raised to $5,500. The IRA contribution limit remains at $5,500 in 2016. One thing that has changed since 2009 are the income limits that impact the ability to take tax deductions for traditional IRA contributions or the ability to contribute directly to a Roth IRA.
2010 Roth IRA Income Limits
There are maximum income limits for Roth IRA contributions. During 2010, married individuals who file jointly can contribute $5,000 ($6,000 if 50 or older) to a Roth IRA only if their modified adjusted gross income (MAGI) is below $167,000. If their MAGI is between $167,000 and $177,000, then they can contribute some amount less than their full limit. If their income exceeds $177,000, they are not eligible to contribute to a Roth IRA for 2010. These numbers increased by $1,000 from 2009. In 2008, this phase-out range was $159,000 to $169,000.
For single individuals, the Roth IRA phase-out limit is lower: $105,000 to $120,000 for 2010. While 2009's numbers were the same as the 2010s, a single individual's income restriction was between $101,000 and $116,000 during 2008.
Updated Information: The income limits for Roth IRA contributions have been adjusted for inflation. For a single individual or one with a head of household tax filing status, the income phase-out range in 2016 is $117,000 to $132,000. The AGI phase-out range for taxpayers making contributions to a Roth IRA is $184,000 to $194,000 for married couples filing jointly.
2010 Roth Conversion Income Limitations
During 2010, the opportunity to convert a regular IRA to a Roth IRA is available to all taxpayers regardless of income. Previously, a conversion was only available to those who had a modified adjusted gross income of $100,000 or less.
To learn more about Roth IRA conversions, check out these important Questions to Ask Prior to Completing a Roth IRA Conversion.
Contribution Limits Have Changed Since 2010
The maximum annual contribution for 2016 is the lesser of $5,500 or 100% of earned income. Taxpayers age 50 and older can contribute another $1,000 for a total contribution of $6,500. You can make a 2016 IRA contribution as late as April 15th, 2017.
To learn more about IRA contribution limits for other tax years, check out the following links:
Updated by Scott Spann.