Retirement Savings Plans

Traditional IRA Income Limits

If you have a traditional individual retirement account (IRA) and are covered by a retirement plan at work the amount of income you can have and not be affected by the deduction phaseout increases. The amounts vary depending on filing status.

Limit on Elective Deferrals

The maximum amount of elective deferrals under a salary reduction agreement that can be contributed to a qualified plan increases to $14 000 ($18 000 if you are age 50 or over). However for a SIMPLE plan the amount increases to $10 000 ($12 000 if you are age 50 or over).

IRA Deduction Expanded

The amount you and your spouse if filing jointly may be able to deduct as an IRA contribution will increase to $4 000 ($4 500 if age 50 or older at the end of 2005).