IRA Increases w/COLA
I see that the IRS issued COLA adjustments this afternoon; however, I don’t see any mention of whether or not the IRA contribution limit will increase by $500. With many other limits increasing substantially, I would assume that IRAs have reached the “threshold” to increase as well. Any word?
Permalink Submitted by Alan Spross on Thu, 2008-10-16 21:58
Apparently, they have not. I base that on the 3rd paragraph in the att’d link where the IRS states that some limits did not change, after which they pretty well covered Secs 408 and 408A without indicating any increase in the basic contribution.
But note that the limit increased to $5,000 just this year, and the incremental amount is $500. Therefore, any figure of under 10% would not exceed the next threshold of $5,500.
If I recall correctly, there is no inflation adjustment on the catch up limit of $1,000. Therefore, that would not increase without further legislation.
http://www.irs.gov/newsroom/article/0,,id=187833,00.html
Permalink Submitted by Alanna Crawford on Fri, 2008-10-17 14:40
Perfect! Thank you!