Roth IRA contribution limit for 2011?

[Mill]

Anyone know if the FED has announced the limit someone can contribute for 2011? I know that now is about the time of the year the FED announces what inflation is/was for 2010.

Im trying to plan ahead here, because I always make a LS contribution to my roth come the first of January...

 

[Amethyst]

Mill,

I believe the decision on IRA contribution limits is up to Congress, and will be deferred (like most things) till after the elections next month.

Amethyst

 

[ziggy29]

Don't know for sure, but I feel pretty confident it will be unchanged.

 

[aaronc879]

I expect it to be unchanged. Don't really care. Whatever the max is, i'll max it out on Jan 3rd. It'll either be $5000 or $5500. Not much difference.

 

[aida2003]

Don't know for sure, but I feel pretty confident it will be unchanged.

I agree.

I'll also add that I'm guessing that 401k contribution limits also won't change for 2011.... The gov't will say very little or no inflation, so $16,500 doesn't need inflation indexing for 2011. Of course, a $500 increment if it got indexed seems small, but would help. But....the gov't need consumers spending instead of saving.

 

[Mill]

I expect it to be unchanged. Don't really care. Whatever the max is, i'll max it out on Jan 3rd. It'll either be $5000 or $5500. Not much difference.

Ok, I get it...youre going to max it out...but you dont care? I think 500 dollars is a big difference for someone our age of tax free money times X years growth. Im hoping for $5,500. Cmon big money, big money...no whammy!

 

[aida2003]

I'll also add that I'm guessing that 401k contribution limits also won't change for 2011.... The gov't will say very little or no inflation, so $16,500 doesn't need inflation indexing for 2011.

So, I was right about 401k contribution limits remaining unchanged for 2011. Contribution limits on 401(k)s won

The same fate will be for Roth IRA's too, I'm 99% positive.

 

[stoutboy]

I wish they'd increase both: the 401k to 20K and the IRA to 10K. The opposing argument is that people who can afford to save that much probably don't need additional sheltered tax savings, but I think that's bunk.

Most people won't hit their top income years until they're in their 40s--and they are likely unable to save the optimal amount in their 20s and 30s due to childrearing expenses. In addition, the last market 'correction' cost some people 40% or more of their retirement nest eggs.

The government should encourage people to save more and consume less.

 

[ziggy29]

In addition, the last market 'correction' cost some people 40% or more of their retirement nest eggs.

True, though it should also be noted that if they didn't panic and sell out near the bottom, they've probably recovered at least half of what they lost in the crash.