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2010 IRA contribution limit remains $5,000

October 15, 2009

There will only be minor inflation adjustments affecting IRA contributions in 2010, according today's announcement from the IRS.

The maximum contribution IRA contribution for 2010 remains at $5,000, and the addtitional "catch-up" amount for those who reach age 50 by the end of 2010 remains at $1,000.

A few of the income phase-outs for IRA contributions will change. The beginning of the phase-out of the deduction traditional IRA contributions for married taxpayers filing separately will start at adjusted AGI of $56,000, rather than $55,000; the phase-out for taxpayers who don't participate in a plan but who have a spouse who does, and who file joint returns, will begin at $167,000, instead of $166,000. The start of the phaseout range for other joint filers will remain at $89,000.

The start of the Roth IRA adjusted AGI phaseout range will increase by $1,000 in 2010, to $167,000, for joint filers; the start of the phaseout range remains at $105,000 for other taxpayers.

For more on IRA deduction limits, check out IRS Publication 590.