’09 IRA COLA increases
The IRS released it’s ’09 COLA increases, but only lists the lower number for Roth IRA eligibilit income limits and traditional IRA deductions. Will the “separation” between the levels remain the same? For example:
For a Roth IRA, an individual that is married filing jointly (or a qualifying widower) that has MAGI of less than $166,000 can make a full contribution, between $166,000 and $176,000 reduced contribution, and over $179,000 no contribution.
Am I correct? Same question with IRA deduction eligibility. The IRS announcement only issued the $55,000 number, not the top end. Would this mean for an individual covered by a retirement plan that is filing single or head of household, the following limits would apply?:
MAGI of $55,000 or less, full deduction.
MAGI between $55,000 and $65,000, partial deduction.
MAGI of $63,000 or more, no deduction.
Any clarification would be greatly appreciated. Thank you!
Permalink Submitted by Alan Spross on Wed, 2008-10-22 19:40
I think you can safely assume that the 2009 range differentials will remain the same as this year. I notice that in the 2007 announcement for 2008, the IRS wording was the same, only showing the lower amount, and none of the range differentials changed.
Permalink Submitted by Denise Appleby on Wed, 2008-10-22 21:28
See http://www.retirementdictionary.com/irs-limits-2009.htm
Permalink Submitted by Alan Spross on Wed, 2008-10-22 22:11
Thanks, Denise. That confirms it.
What alanna referred to as “separation” and I referred to as “differentials” did in fact remain the same. The thresholds were increased overall for both the top and bottom #s, but where there was a difference of 10,000 or 15,000 or 20,000 from the bottom of each range to the top, that difference did remain the same.