Welcome
To Kelan .Net
|
Welcome
To Kelan .Net |
|
2004 Contribution Limits
IRAs, Simple IRAs, Roth IRAs, SEP, 401K, 457 and 403B Plans
2005 Contribution Limit
Including “Catch-Up” Provisions For Certain Taxpayers
HOME BUSINESS SOLUTIONS TAX SERVICES E COMMERCE FIRM PROFILE LINKS
The Economic Growth and Tax Relief Reconciliation Act of 2001 increased the maximum amount you can contribute annually to tax favored retirement accounts.
Beginning in tax year 2002, if you are over 50 years of age, you also can make “catch-up” contributions*** to your retirement account. Catch up contributions are eligible for employer matching contributions. Unfortunately, the tax act did not raise the income limits for traditional IRAs, Simple IRAs or Roth IRAs.
There is some good news for higher income taxpayers prohibited from contributing to Roth IRA or Traditional IRA. Participants in employer sponsored qualified retirement plans such as a 401 K and 403 B, will receive increased annual contribution limits and larger “catch-up” amounts.
There is even better tax news if you have a Simplified Employee Pension (SEP). Beginning in tax year 2002, the Economic Growth and Tax Relief Reconciliation Act increased the percentage you can contribute to a SEP from 15% to 25% and the maximum considered compensation from $170,000 to $200,000. If you are a employee of a company the maximum contribution to a SEP in 2002 and 2003 is $40,000. If you are self-employed the maximum contribution percentage is reduced to 20% but the maximum contribution remains capped at $40,000. For tax year 2004, the compensation limit is increased to $205,000 resulting in a maximum SEP contribution of $41,000.
See Also
Traditional IRAs
Year Maximum Regular Contribution Catch-up Contribution ***
2002 $3,000 $500
2003 $3,000 $500
2004 $3,000 $500
2005 $4,000 $500
2006 $4,000 $1,000
2007 $4,000 $1,000
2008 $5,000 $1,000
Roth IRAs
Year Maximum Regular Contribution Catch-up Contribution ***
2002 $3,000 $500
2003 $3,000 $500
2004 $3,000 $500
2005 $4,000 $500
2006 $4,000 $1,000
2007 $4,000 $1,000
2008 $5,000 $1,000
Simple IRAs
Year Maximum Regular Contribution Catch-up Contribution ***
2002 $7,000 $500
2003 $8,000 $1,000
2004 $9,000 $1,500
2005 $10,000 $2,000
2006 $10,000 $2,500
2007 Indexed Indexed
401K Plans
Year Annual Contribution Limits Catch-up Contribution ***
2002 $11,000 $1,000
2003 $12,000 $2,000
2004 $13,000 $3,000
2005 $14,000 $4,000
2006 $15,000 $5,000
2007 Indexed to Inflation Indexed to Inflation
403 B Plans
Year Annual Contribution Limits Catch-up Contribution ***
2002 $11,000 $1,000
2003 $12,000 $2,000
2004 $13,000 $3,000
2005 $14,000 $4,000
2006 $15,000 $5,000
2007 Indexed to Inflation Indexed to Inflation
Section 457 Plans
Year Annual Contribution Limits Catch-up Contribution ***
2002 $11,000 $1,000
2003 $12,000 $2,000
2004 $13,000 $3,000
2005 $14,000 $4,000
2006 $15,000 $5,000
Contribution Tax Credit and AGI Income Limits
Tax Credit Rate 50% 20% 10%
Single to $15,000 $15,000 to $16,250 $16,250 to $25,000
Married Joint to $30,000 $30,000 to $32,500 $32,500 to $50,000
Married Separate to $15,000 $15,000 to $16,250 $16,250 to $25,000
Head of Household to $22,500 $22,500 to $24,375 $24,375 to $37,500
|
CONTACT INFORMATION: |
|
Kelan Roy, CPA MT |
|
Serving individuals and small-to-medium sized businesses with a range of tax return preparation, tax planning and consulting services. Dallas - Fort Worth Texas Copyright 2000-2005 Kelan Roy, CPA. All Rights Reserved. |