Retirement Contributions for 2007: Limits for IRAs, 401(k)s, 403(b)s, and 457 Plans

Now that you've had a few weeks to recover from tax season, it's time to review your current budget and savings plan to make sure you are on track with your retirement savings for 2007.

Traditional IRAs:

For Traditional IRAs, the maximum regular contribution for 2007 is $4,000. If you are or will turn 50 by the end of 2007, you are also eligible to make a $1,000 "catch-up" contribution, for a total of $5,000.

Here are the 2007 Modified Adjusted Gross Income (AGI) limits for Traditional IRAs Contribution Deductions:

Single Participant
Modified AGI Under $52,000: Full Deduction Allowed
Modified AGI $52,000-$62,000 Partial Deduction Allowed
Modified AGI Over $62,000 No Deduction Allowed

Joint, Participant Spouse*
Modified AGI Under $83,000: Full Deduction Allowed
Modified AGI $83,000-$103,000 Partial Deduction Allowed
Modified AGI Over $103,000 No Deduction Allowed

Joint, Non-participant Spouse*
Modified AGI Under $156,000: Full Deduction Allowed
Modified AGI $156,000-$166,000 Partial Deduction Allowed
Modified AGI Over $166,000 No Deduction Allowed

*If you are married and are covered by a qualified employer plan, such as a 401(k), you are considered a "Joint, Participant Spouse." If you are married and are not qualified for an employer plan, you are considered to be a "Joint, Non-participant Spouse."

Roth IRAs:

For Roth IRAs, the maximum regular contribution for 2007 is $4,000. If you are or will turn 50 by the end of 2007, you are also eligible to make a $1,000 "catch-up" contribution, for a total of $5,000.

Roth IRA contributions are phased out if your Modified AGI is $99,000 to $114,000 for single filers and $156,000 to $166,000 for joint filers.

401(k), 403(b), and 457 Plans:

In 2007 you can contribute $15,500 to a 401(k), 403(b), or 457 plan. If by year end you will be age 50 or older, you can make a $5,000 catch-up contribution for a total of $20,500. Note that you may be subject to other limitations put in place by your employer.

SEP-IRA and Keogh Plans:

The maximum contribution in 2007 is the lesser of $45,000 or 25% of your compensation.

SIMPLE IRAs:

In 2007 employees can contribution up to $10,500 to a SIMPLE IRA. If they are 50 or older, they are elgible to make a $2,500 catch-up contribution for a total of $13,000.