Thursday, November 05, 2009

Despite lack of social security COLA, government still offers savers myriad opportunities in 2010


A column in the DC Examiner (p 23) today (Nov. 7) by Kimberly Lankford, from Kiplinger’s Money Power, may help people do their 2010 retirement savings planning. The title of the piece is “How much can I save for retirement in 2010?” with link here.

The lack of formally defined inflation and therefore the lack of a COLA increase in social security benefits for 2010 does not reduce retirement contribution limits in 2010. Roth IRA contributions can continue at the same rate, and for married couples the maximum permissible income goes up slightly. There is also an elimination of an income limit for converting a traditional IRA to a Roth.

Income tax brackets will rise slightly in 2010, and the gift allowance remains intact.

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