Direct Donations of IRAs to Charity

For 2008 and 2009, IRA owners age 70½ and older can donate up to $100,000 of their IRAs to charity without having to report the withdrawal as income, and the donation is not included in taxable income. Amounts donated in this way count as all or part the IRA owner’s required minimum distribution.

2009 Limits on Retirement Accounts

Higher Income Limits for Deductible IRAs and for Roth IRAs—If you are covered by a retirement plan at work, you can take a full IRA deduction in 2009 if your modified adjusted gross income is less than $89,000 (married filing jointly) or $55,000 (single or head of household). A partial deduction is allowed until your adjusted gross income reaches $109,000 if you are married filing jointly or $75,000 if you are single or a head of household.
Also, the opportunity to contribute to a Roth IRA is now phased out as your modified adjusted gross income rises between $166,000 and $176,000 if you are married filing jointly or $105,000 to $120,000 if you are single or a head of household.

Increased Contribution Limit for 401(k) Plans—The maximum employee contribution rises to $16,500 from $15,500 in 2009 for these and similar workplace retirement plans including 403(b)s and the federal Thrift Savings Plan. Workers age 50 and older in 2009 can put in an additional $5,500 this year, also a $500 increase from 2007. Thus, their maximum contribution is $22,000.