Financial Symmetry News & Views

This issue of our In the Know will discuss the contribution limits for Qualified Retirement Plans, Traditional and Roth IRAs as part of your 2009 savings plan review.

Make your 2008 Roth IRA contribution:

If you have not yet made the maximum contribution, you still have time! Tax payers have until April 15th of 2009 to make their Roth contributions for the 2008 tax year. If you are within the income limitations to make contributions, a Roth IRA is an excellent investment as investment growth is tax deferred and withdrawals in retirement can be tax free.

Looking forward for 2009 contributions, there are a few increased contribution limits for this year and a few that have stayed the same. While the limits for the Roth and Traditional IRAs have not increased, the limits for the majority of employer sponsored plans such as 401ks and 403bs, have.

A very good practice is to contribute enough of your salary to receive at least the employer match. Also, pay raises often present an easy opportunity to increase your deferral, while reducing your adjusted gross income.

The contribution limits for nearly all types of retirement plans are listed in the following chart:

Qualified Plans	2008	2009
401k, Roth 401k, and 403b plans	$15,500	$16,500
- Catch-up for ages 50 & over	$5,000	$5,500
457 Plans of tax exempt employers	$15,500	$16,500
- Catch-up for ages 50 & over	$5,000	$5,500
SIMPLE IRA or SIMPLE 401k plans	$10,500	$11,500
- Catch-up for ages 50 & over	$2,500	$2,500
Limits on annual additions to SEP Plans	$46,000	$49,000
Traditional and Roth IRAs	$5000	$5000
- Catch-up for ages 50 & over	$1000	$1000

Our wealth management service monitors your income and determines every year how much you should be contributing to each of these investment accounts. It also reviews your income tax and estate picture, which may provide opportunities for tax savings.

If you are interested in this service, please contact us.