Michael J Kavanagh : Northwestern Mutual - Contributions for IRAs and Qualified Retirement Plans : Article: Contributions for IRAs and Qualified Retirement Plans

2009 Contributions for IRAs and Qualified Retirement Plans

Investing in your future is one of the most important financial steps you can take.

Coverdell IRA
The annual contribution limit is $2,000, and the phase out range for joint filers has increased to $190,000 - $220,000.

Traditional and Roth IRA
The annual contribution limit is $5,000 for 2009 and individuals who are at least age 50 may contribute an additional $1,000.

SIMPLE IRA
The annual salary deferral limit is the lesser of 100% of compensation or $11,500 and individuals who are at least age 50 may defer an additional $2,500.

403(b) Tax Deferred Annuity
The annual salary deferral limit is the lesser of 100% of compensation or $16,500, and employees who are at least age 50 may defer an additional $5,000.

Traditional 401(k) Plan
The annual salary deferral limit is now the lesser of 100% of compensation or $16,500, and employees who are at least age 50 may defer an additional $5,000.

Simplified Employee Pension Plan
The employer contribution limit on excludable contributions is the lesser of 25% of compensation or $49,000.

Profit Sharing Plan
The employer contribution limit is the lesser of 25% of compensation or $49,000.

Several additional factors may also affect the amount of contributions to an IRA or qualified retirement plan by you or your employer. The compensation cap for 2009 is $245,000. Consult your tax advisor for additional information.

Source: The Northwestern Mutual Life Insurance Company

Revised: 02/09.

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Northwestern Mutual Financial Network is the marketing name for the sales and distribution arm of The Northwestern Mutual Life Insurance Company, Milwaukee, WI (NM), and its subsidiaries and affiliates. Michael J Kavanagh is a Representative of Northwestern Mutual Wealth Management Company®, Milwaukee, WI (WMC), a wholly-owned company of NM and limited purpose federal savings bank. WMC is not a broker-dealer or insurance company. All WMC products and services are offered only by properly credentialed Representatives who operate from agency offices of WMC. Representative is an Insurance Agent of NM (life insurance, annuities and disability income insurance), and Northwestern Long Term Care Insurance Company (NLTC), a subsidiary of NM (long-term care insurance), and a Registered Representative of Northwestern Mutual Investment Services, LLC (NMIS), 6235 Morrison Blvd, Charlotte, NC 28211-3508, 704-365-2014, a wholly-owned company of NM, registered investment adviser, broker-dealer and member FINRA (www.finra.org) and SIPC (www.sipc.org). Representative may also be an Investment Adviser Representative of NMIS. NM and the Northwestern Mutual Financial Network - Charlotte are not broker-dealers, registered investment advisers or federal savings banks. There may be instances when this agent represents insurance companies in addition to NM or its affiliates.

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