Friday, August 1st 2014

2007 Tax-Advantage Retirement Plans Cheat Sheet

by Mr Credit Card

It has always been a pain in the neck when I am doing research on many things on the web. Recently, I was doing some research on retirement plans. So to make things easy for you, I’ve compiled a cheat sheet about the 2007 rules for qualified retirement plans.

Traditional IRA

Age Contribution Limits

Under 50 – Lesser of $4,000 or 100% of taxable income
Over 50 – Lesser of $5,000 or 100% of taxable income

Phaseout Ranges for IRA Contribution Deductibility

Married and Filing Jointly – $83,000 to $103,000 MAGI (Modified Adjusted Gross Income)
Married and Filing Seperately – $0 to $10,000 MAGI
Single and Head of Household – $52,000 to $62,000 MAGI
Spousal IRA filing Jointly, IRA of non-participant – $156,000 to $166,000 MAGI

The Full Rules

1. If you are under 70 1/2 years old with earned income and both you and your spouse do not participate in any employers plan, then you can fully deduct your contribution to your IRA regardless of your MAGI.

2. If either you or your spouse participates in an employer plan, then the above rules apply.

3. Full deductibility is allowed if you earn below the above mentioned ranges. Scaled partial deduction is permitted within the range. If you exceed the income threshold, there is no deductibility.

Roth IRA Contribution Limits

Age Contribution Limits

Under 50 – Lesser of $4,000 or 100% of taxable compensation.
Over 50 – Lesser of $5,000 or 100% of taxable compensation limits

Phaseout Ranges for IRA Contribution Deductibility

Married and Filing Jointly – $156,000 to $166,000 MAGI
Married and Filing Seperately – $0 to $10,000 MAGI
Single – $99,000 to $114,000 MAGI

The Full Rules

1. If your earnings are below the ranges discussed above, full contributions are allowed.

2. Scaled partial contributions are allowed if your income falls within the range in the appropriate category.

3. You cannot contribute if your income exceeds the range.

4. Roth conversions are not allowed if your MAGI exceeds $100,000 or if married and filing seperately.

SEP IRA Contributions

If you have SEP plan, you can put up to the lesser of $45,000 or 25% of your compensation. There is a maximum cap of $225,000 per employee.

401(k), 403(b), 457, SARSEP Salary Deferral Compensation

Age Contribution Limits

Under 50 – $15,500
Over 50 – $20,500

Contributions to these plans can be doubled in the last three years before retirement though catcup cannot be used.

Simple IRA Salary Deferral Contributions

It has always been a pain in the neck when I am doing research on many things on the web. Recently, I was doing some research on retirement plans. So to make things easy for you, I’ve compiled a cheat sheet about the 2007 rules for qualified retirement plans.

Traditional IRA

Age Contribution Limits

Under 50 – Lesser of $4,000 or 100% of taxable income
Over 50 – Lesser of $5,000 or 100% of taxable income

Phaseout Ranges for IRA Contribution Deductibility

Married and Filing Jointly – $83,000 to $103,000 MAGI (Modified Adjusted Gross Income)
Married and Filing Seperately – $0 to $10,000 MAGI
Single and Head of Household – $52,000 to $62,000 MAGI
Spousal IRA filing Jointly, IRA of non-participant – $156,000 to $166,000 MAGI

The Full Rules

1. If you are under 70 1/2 years old with earned income and both you and your spouse do not participate in any employers plan, then you can fully deduct your contribution to your IRA regardless of your MAGI.

2. If either you or your spouse participates in an employer plan, then the above rules apply.

3. Full deductibility is allowed if you earn below the above mentioned ranges. Scaled partial deduction is permitted within the range. If you exceed the income threshold, there is no deductibility.

Roth IRA Contribution Limits

Age Contribution Limits

Under 50 – Lesser of $4,000 or 100% of taxable compensation.
Over 50 – Lesser of $5,000 or 100% of taxable compensation limits

Phaseout Ranges for IRA Contribution Deductibility

Married and Filing Jointly – $156,000 to $166,000 MAGI
Married and Filing Seperately – $0 to $10,000 MAGI
Single – $99,000 to $114,000 MAGI

The Full Rules

1. If your earnings are below the ranges discussed above, full contributions are allowed.

2. Scaled partial contributions are allowed if your income falls within the range in the appropriate category.

3. You cannot contribute if your income exceeds the range.

4. Roth conversions are not allowed if your MAGI exceeds $100,000 or if married and filing seperately.

SEP IRA Contributions

If you have SEP plan, you can put up to the lesser of $45,000 or 25% of your compensation. There is a maximum cap of $225,000 per employee.

401(k), 403(b), 457, SARSEP Salary Deferral Compensation

Age Contribution Limits

Under 50 – $10,500
Over 50 – $13,000

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