Contribution Deadlines & Limits
CONTRIBUTION DEADLINES
Individual Plans
IRA and Roth IRA: Tax Filing Deadline (typically April 15th)
With certain exceptions made for weekends, the April 15 deadline for filing your federal income tax is also the deadline for investors to make their final Traditional IRA and Roth IRA contributions. Tax-filing extensions do not apply to your IRA or Roth IRA contributions. This means that your contributions must be deposited by your tax filing due date. Similar to your tax return, a postmark date is considered timely; therefore, if you send your contribution in the mail by April 15, you will have met the deadline, even if your financial institution receives the contribution after April 15.
Small Business Plans
SEP IRA: Tax Filing Deadline (April 15th) or Extended Tax Filing Date
If you are a sole proprietor, you may make your annual contribution to a SEP IRA for a specific tax year starting on January 1st of that year and the contribution deadline is your tax return filing date (generally April 15th of the following year). If you have filed an extension, you will have until that date to contribute, which is generally October 15th. If you are an employer of a firm that offers a SEP IRA and you are not a sole proprietor, the deadlines are March 31st and September 15th.
Important Solo(k) Deadlines
Plan Adoption Deadline:
If you are a new adopter of a PENSCO Trust Solo Plan, you must complete all plan adoption steps by the last day of your business tax year in order to first make contributions for that year. For example, if your business tax year ends December 31, you must complete all plan adoption steps by December 31, 2009 in order to make plan contributions for 2009. Please refer to the PENSCO Trust Solo(k) Plan Establishment Kit for an explanation of plan adoption steps. Important Note: If your business is incorporated, you may make elective (401(k)) deferrals only for salary that is payable after your plan is adopted and you complete the applicable elective deferral form. For example, if your business is incorporated, your business tax year ends December 31, 2009 and you adopt your plan on December 1, 2009, you may make 2009 elective deferrals only for salary payable in December 2009.
Plan Contribution Deadlines:
Elective (401(k)) Deferrals
Incorporated business
The deadline for the completion of the elective deferral form is the last day of the plan year. The election applies only to salary payable after the election form is completed. The contribution must be sent (postmarked if by mail) to PENSCO Trust no later than the deadline, including extensions actually granted, for filing your business federal income tax return for its tax year for which the contribution is made.
Unincorporated business
(partnership, LLC; sole proprietor)The deadline for the completion of the elective deferral form is the last day of the plan year. The election applies to any compensation earned for that year. The contribution must be sent (postmarked if by mail) to PENSCO Trust no later than the deadline, including extensions actually granted, for filing your business federal income tax return for its tax year for which the contributions is made.
Profit Sharing (Discretionary) Contributions
The contribution must be sent (postmarked if by mail) to PENSCO Trust no later than the deadline, including extensions actually granted, for filing your business federal income tax return for its tax year for which the contributions is made.
Rollover and Transfer Contributions.
Rollover or transfer contributions may be made at any time when eligible.
For businesses with non-calendar tax years, substitute:
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| Contribution Type | Business Type | Election Deadline | Contribution (Postmark) Deadline | Contribution (Postmark) Deadline with Extension |
|---|---|---|---|---|
| Elective Deferral (Roth) | Incorporated | 12/31/091 | 03/15/092 | 09/15/094 |
| Elective Deferral (Roth) | Unincorporated | 12/31/091 | 03/15/092 | 09/15/094 |
| Elective Deferral (Pre-Tax) | Incorporated | 12/31/091 | 04/15/093 | 10/15/195 |
| Elective Deferral (Pre-Tax) | Unincorporated | 12/31/091 | 04/15/093 | 10/15/105 |
| Profit Sharing | Incorporated | N/A | 03/15/102 | 09/15/104 |
| Profit Sharing | Unincorporated | N/A | 04/15/103 | 10/15/105 |
| Rollover or Transfer | Incorporated | N/A | N/A | N/A |
| Rollover or Transfer | Unincorporated | N/A | N/A | N/A |
Special Plans
Coverdell ESA: Tax Filing Deadline (typically April 15th)
Contributions to a Coverdell ESA for the previous year must be made by the contributor's tax filing deadline, without extensions.
For example, you have until April 15th, 2009, to make a contribution for your 2008 tax year, even if you file an extension with the IRS.
Contribution Limits
Below is a comprehensive series of charts displaying the various contribution limits, phase-out ranges, and deadlines for all of the types of self-directed accounts held at PENSCO.
Individual Plans
How much can you contribute to an IRA or Roth IRA?
| Tax Year | Age 49 & Below | Age 50 & Above |
|---|---|---|
| 2002-2004 | $3,000 | $3,500 |
| 2005 | $4,000 | $4,500 |
| 2006-2007 | $4,000 | $5,000 |
| 2008 | $5,000 | $6,000 |
| 2009 | $5,000 | $6,000 |
| 2010 | Indexed to inflation | Indexed to inflation |
The following chart shows if you are eligible to make a Roth IRA contribution in a given tax year, based on your Adjusted Gross Income.
| Tax Year | Single | Married Filing Jointly |
|---|---|---|
| 2005 | $95,000-$110,000 | $150,000-$160,000 |
| 2006 | $95,000-$110,000 | $150,000-$160,000 |
| 2007 | $99,000-$114,000 | $156,000-$166,000 |
| 2008 | $101,000-$116,000 | $159,000-$169,000 |
| 2009 | $105,000-$120,000 | $166,000-$176,000 |
| 2010 | Rollover limit removal | Rollover limit removal |
Small Business Plans
| Year | Maximum dollar allocation | Maximum considered compensation |
|---|---|---|
| 2005 | $42,000 | $210,000 |
| 2006 | $44,000 | $220,000 |
| 2007 | $45,000 | $225,000 |
| 2008 | $46,000 | $230,000 |
| 2009 | $49,000 | $245,000 |
| 2010 | TBD | TBD |
|
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| Year | Age 49 & Below | Age 50 & Above |
|---|---|---|
| 2008 | $15,500 | $20,500 |
| 2009 | $16,500 | $22,000 |
Special Plans
Coverdell Education Savings Accounts (ESAs)
| Standard Limit (up to age 18) | MAGI Limits to qualify for account |
|---|---|
| $2,000 |
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