2010 Traditional and Roth IRA Contribution Limits

The Traditional and Roth IRA contribution limits for 2010 are $5,000 for those under age 50. Persons age 50 and over can make additional catch up contributions of $1,000, for a total contribution limit of $6,000. You can have both a Roth IRA and a Traditional IRA in the same tax year, but you can't exceed the contribution limit with your combined contributions to both accounts. Self-employed retirement plans may have different rules, so be sure to read up on the different self-employment tax plans or check with your accountant or financial advisor.

2010 IRA Contribution Limits

Traditional IRA Deductions and Roth IRA Phase outs

The IRS has specific rules regarding who can contribute to an IRA. Traditional IRAs and Roth IRAs base certain eligibility guidelines on the taxpayer's Modified Adjusted Gross Income (MAGI), which is calculated when you file your taxes.

Traditional IRA Deductions

Traditional IRA contributions are tax deductible if you make less than the IRS deductibility phase out level. Tax filers can deduct a lower portion of their Traditional IRA contribution starting at $55,000 and can no longer deduct any of their contribution when they earn $65,000 or more. The phase out range for married filing jointly is between $89,000 and $109,000.

Roth IRA phase out

Like the Traditional IRA, the IRS has phase out rules for Roth IRAs. Tax filers will be able to contribute less to their Roth IRA when they have a MAGI above $105,000, or above $167,000 for married filing jointly (up $1,000 from last year). Single filers with a MAGI above $120,000 and married filing jointly with a MAGI above $176,000 are not eligible for Roth IRA contributions.

Making 2010 IRA contributions

You can still contribute to your 2009 IRA until April 15, 2010, and you can make IRA contributions for the 2010 tax year from January 2, 2010 and April 15, 2011. If you make an IRA contribution between January 2 and April 15th you should designate which tax year your contributions are for.

Your IRA funds are insured to $250,000 separately* from any other shares you have at the Credit Union by the NCUA.

IRA contributions may be tax deductible so saving with an IRA may help you minimize your tax liability.

Call us for more information, or visit our Hayward Service Center to open your account. Use payroll deduction as a way to accumulate funds in your IRA account, and start earning dividends right away. There is no annual fee to maintain your IRA, and we offer very competitive rates. If you already have a Bay Cities IRA, we can mail you your contribution forms. You can also read this brochure* for additional information on IRAs.

*This file is in Portable Document Format (pdf) which can be read by Acrobat Reader. If you do not have the Acrobat Reader software or plug-in for your browser to view online, you can Get Acrobat now.