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Is a Roth Conversion Right for You?
The income limits are waived in 2010. Click here for more information and a link to our Roth Conversion calculator.
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Are You Fully Funded?
 You can still fund your
Traditional and Roth IRA's for 2009 until the tax filing deadline of April 15th. Funding IRA's can be one of the most effective ways to accumulate long term
wealth. The tax benefits associated in funding Traditional or Roth
IRA's is also an important element to consider. Please contact our office
if you have any questions or concerns regarding the benefits or tax
implications of the various IRA platforms. Please see the table
below for a quick update on the funding limits and qualifications for 2009 & 2010.
Retirement Plan / Qualified Plan Limits
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Account Classification
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2009 & 2010
Age 49 and Under
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2009 & 2010
Age 50 and Over
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Traditional IRA
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$5,000
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$6,000
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Roth IRA
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$5,000
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$6,000
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Simple IRA
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$11,500
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$14,000
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401(K) employee deferral
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$16,500
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$22,000
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Roth IRA Phase-Out Range & Limits
Year
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Single
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Married Filing Jointly
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2009
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$105,000-$120,000
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$166,000-$176,000
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2010
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$105,000-$120,000
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$167,000-$177,000
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SEP IRA Limit
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Year
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Max Dollar Allocation
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Max Considered Compensation
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2009
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$49,000.00
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$245,000.00
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2010
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$49,000.00
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$245,000.00
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There are rules and conditions associated with SEP Plan
contributions. Please contact us
for details associated to any specific circumstance.
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Social Security: Did you Know?
- The total amount of social security payments in 2009 were $56 billion with 47.7 million recipients.
- Typically, one can request social security benefits at full retirement age, before full retirement age, or wait until past retirement age. Each year a recipient
waits past eligibility to collect benefits, 8% is added to their annual
benefit.
- You must activate Medicare at
your full retirement age whether you are collecting social security benefits or not.
- In the event of spousal death, the surviving spouse can choose to take 50% of
the deceased spouses benefit or their own benefit amount, whichever
is greater.
In 2009, one-third of
the social security recipients were children, widows, and the disabled (not
retirees).
- A divorced spouse must have been married over 10 years to qualify for the ex-spouses benefits.
- If you are collecting social security benefits and have earned income, there are limits to how much you can earn:
- Below your full retirement age: $14,160. For every $2 over the limit, $1 is withheld from benefits
- In the year you reach full retirement age: $37,680. For every $3 over the limit, $1 is withheld from benefits until the month you reach full retirement age.
- Over full retirement: no limit on earnings
Please visit www.socialsecurity.gov for more information.
Source: Social Security conference call for financial advisors, 1/29/2010
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