Required Minimum Distributions will resume as usual for 2010.   The WORKERS, RETIREES AND EMPLOYERS RECOVERY ACT OF 2008  which suspended RMDs for 2009 has expired.   2009 / 2010 Cost of Living Adjustments Traditional and Roth Contribution Limits (annual per person) For Tax Year Under Age 50 Age 50 or Older 2009/2010 $5000 $6000 Regular contribution deadline is the tax filing deadline with no extensions (usually April 15th or next business day) Deductibility of Traditional IRA Contributions if participating in a Qualified Plan:    Tax Year  Full Ded  Partial Ded  No Ded  Single:        2009/2010  <$55,000  $55,000-$65,000  >$65,000  Married:        2009/2010  <$89,000  $89,000-$109,000  >$109,000  Married - One Spouse has QP, Other Spouse no QP Non-Covered Spouse Phaseout  2009       <$166,000  $166,000-$176,000  >$176,000  2010  <$167,000  $167,000-$177,000  >$177,000     Roth Contribution Eligibility - Income Phaseout Tax Year Full Cont Partial Cont No Cont Single: 2009/2010 <$105,000 $105,000-$120,000 >$120,000 Married: 2009 <$166,000 $166,000-$176,000 >$176,000 2010 <$167,000 $167,000-$177,000 >$177,000 Simplified Employee Pension Plan Contribution Limits For Tax Year Percentage Compensation Maximum Contribution 2009/2010 0 - 25% of up to $245,000/compensation $49,000 (max) Contribution deadline is the employer's tax filing deadline PLUS extensions

Pension Protection Act of 2006 (effective August 17, 2006) Beginning January 1, 2007,  nonspouse beneficiaries of a Qualified Employer Plan are aloowed to do a "direct" rollover into an Inherited IRA at a financial institution if the plan allows. They must begin taking single life expectancy payouts death distributions beginning the year after the owner's death. Beginning January 1, 2008, both pre-tax and after-tax contributions in a Qualified Employer Plan are able to be rolled into a Roth IRA subject to the $100,000 income limit for conversions.  Pre-tax contributions rolled into the Roth will be includible in income the year they are rolled over. Qualified reservists called to active duty beginning on 9/11/01 and may take penalty-free withdrawals from their IRAs and have two years after discharge of active duty to roll the funds back in.  This expired in 12/2007 but was reinstated as part of the HEART Act of 2008. From 1/1/07 through 12/31/09 participants of certain employer plans who declare bankruptcy may make IRA catch-up contributions up to $3000/per year. Many of the provisions of EGTRRA that were set to expire - including the Savers Tax Credit provision - are made permanent. HOPE Act - beginning in 2007, IRA participants may do a "once-in-a-lifetime" distribution from their IRAs to fund a regular contribution to a Health Savings Account.  This is reported as "premature - no exception" or 'normal" depending on the IRA accountholder's age.  The contribution into the HSA will be coded as a "regular contribution" and cannot exceed the HSA contribution limit for that year.  If coming from a Traditional, it will not be includible in income, and will not be allowed a line item tax deduction for that year.

NEW ROTH CONVERSION RULES EFFECTIVE 2010 The Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA) was signed into law in May, 2006. Effective 2010, anyone - regardless of income - will be able to convert their Traditional IRAs to Roth IRAs. Currently there is a maximum $100,000 annual income limit to allow conversions. If the funds are converted in the 2010 calendar year, the taxable income reporting can be claimed 100% on the 2010 tax return or postponed to 50% in 2011 and the other 50% in 2012.  Any conversion after 2010, would be reported as taxable in the year converted. Loophole - Contributors who have MAGI over the annual income limits who are not allowed to make regular contributions to a Roth, will be able to make contributions to a Traditional and then convert them to a Roth to build up tax-free income savings. Qualified Charitable Distributions that were reinstated for 2008 and 2009 has now expired in 2010