Good Money--Retirement Plan Limits, Reminders & Required Minimum Distribution Changes for 2009

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Your guide to profitable and socially responsible investing
By Judith L. Seid, CFP ®

This is the time to make sure you are contributing the maximum amount the
IRS allows to your retirement plans.

For those of you who automatically contribute to your retirement accounts
every month, you may need to increase your monthly amounts to meet the 2009
limits going forward, as this will not happen automatically.

If you plan to invest the maximum amount in your retirement accounts, you
will want to review and possibly update the amount you are deferring through
your employer.  If you have IRAs you may want to review and update your
monthly investment amounts to these accounts.  Please see the new limits
below.

The deadline for IRA & Roth-IRA contributions is April 15th, and the deadline
for SEP & Simple-IRA is tax filing deadline, including extensions.

If you are over 70 ½ years old, you get a break in 2009.  Congress has
suspended your Required Minimum Distributions (RMD) that need to be taken form
your IRA for 2009, due to the down-market. 

Here are the new limits for 2009:

IRA & Roth-IRA:

Maximum contribution stays at $5,000 per person/ year (Roth-IRA phases out
at $101k - $116k single or $159k - $169k joint)
Additional over 50 amount stays at $1,000

IRA Deductibility:

Single - phase out begins over $53k AGI
Joint - phase out begins over $85k AGI

Roth-IRA Conversion Limit:

Before 2010: AGI < $100k
2010 and Later: Unlimited AGI

Simple-IRA:

Employee contribution limit goes up to $11,500
from $10,500
Additional over 50 amount stays at $2,500

401k, 403b, & 457 Plans:

Employee contribution limit rises to $16,500
from $15,500
Additional over 50 amount goes up to $5,500
from $5,000

Defined Contribution Plan Limits:

Increased from $46,000 to $49,000.
Annual compensation limit increased
from $230,000 to $245,000.

Self-Employed and Business Owners:

It is always good to have your financial advisor review your plan to determine
if you still have the best plan to fit your needs each year.  You can
change plans, but we cannot do this mid-year. For example, if you currently
have a SEP, a Simple IRA may be better depending on the situation.

Judith L. Seid, President and founder of Blue Summit Financial Group,
Inc,  is a Certified Financial Planner who has actively used Socially Responsible
Investing (SRI) for her clients since 1992.  She firmly believes that "We
can influence corporations to change their policies by avoiding investments in
irresponsible companies and by seeking investments in companies with positive
practices and products." Socially responsible investing (SRI) exists for investors
looking to use the power of financial investment to create sustainable social
change.  For more information on Sustainable Investing, contact Judith
at Blue Summit Financial Group in La Mesa, (619) 698-4330; www.BLUESUMMITINVEST.com Securities
offered through Pacific West Securities, Inc. (Pacific West) Member FINRA/SIPC.  Advisory
services provided through Pacific West Financial Consultants, Inc., a Registered
Investment Advisor.  Blue Summit Financial Group, Inc. and Pacific
West are not affiliated.


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