How Much Are Contributions to Self Directed IRA Accounts?
How Much Are Contributions to Self Directed IRA Accounts
?
Contributions to self directed IRA accounts differ depending on what type of account you have invested in. It's important to know all of your options before you decide on a plan. A truly self directed IRA custodian will offer all of these options in addition to a self directed traditional IRA.
Many of these plans allow additional levels of contribution or work in conjunction with other retirement plans. In many cases, if you are 50 or over, there are even additional contribution "catch up" levels. In addition, many accounts have a modified adjusted gross income level (MAGI) that the account holder must not exceed to qualify for the retirement plan, but not all are bound by MAGI limits. Read on for more information.
Traditional IRA and Roth IRA Contribution Limits
This is the most common form of an IRA account. Whether you decide to go with a conventional IRA, Roth, or a self directed IRA, you're contributions are as follows:
Standard Contribution Limits
$5,000
Catch Up Limits
$6,000
MAGI Limits for 2010 (for Roth's only)
$105,000 - $120,000 for single
$167,000 - $177,000 married filing jointly
SEP Contribution Limits
The Simplified Employee Plan is ideal for small business owners or self employed individuals. The individual may not contribute more than 25% of their earnings, and maximum allocations are as follows:
No more than $49,000 allocated to the account
The income level is also capped at $245,000
SIMPLE IRA Contribution Limits
For businesses that have less than 100 employees, the Savings Incentive Match Plan for Employees (SIMPLE) is an option. The employer is generally required to match the retirement plan up to 3% of the contribution level. The contribution levels are as follows:
Standard Contribution Limits
$11,500
Catch Up Limits
$14,000
CESA Contribution Limits
The Coverdell Education Savings Account (CESA) allows you to save up for a specified beneficiary such as a child, grandchild or great grandchild. As long as the expenses go towards a qualified education expense, they are tax-free contributions and tax deductible.
Standard Contribution Limits
Contributions may not exceed $2,000
MAGI Limits
$95,000 - $110,000 for single
$190,000 - $220,000 married filing jointly
HSA Contribution Limits
The Health Savings Account (HSA) will help decrease health insurance premiums and cover qualified current or future medical expenses.
Standard Contribution Limits
$3,050 for a single individual
$6,150 for a family
Catch Up Limit
$4,050 for a single individual
$7,150 for a family
Solo 401(k)
This resembles a combination of SEP and SIMPLE. A sole proprietorship may choose to use this account , which allows larger contributions and deductions. Contribution limits are as follows:
Standard Contribution Limits
$16,500
Catch Up Limits
$22,000
Roth Solo 401(k)
Contribution levels remain the same as the Solo 401(k), but taxes are paid before they are put into the retirement plan.
Standard Contribution Limits
$16,500
Catch Up Limits
$22,000
It's always a good idea to check on the contributions to self directed IRA accounts before you make any investments. Your passive custodian should help ensure that all of your questions are answered. Good luck in your financial future!
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