There are several methods to plan for retirement and reduce your current and future tax liability.These slides offer a few suggestions for 2009 and 2010.

Vehicles for Nonbusiness Owners

• 401(k) or 403(b)
  • If the employer is matching, this is generally the best option
  • Maximum contribution for 2009 and 2010 is $16,500
  • If 50 or older, maximum contribution is $22,000
• Traditional IRA (deductible)
  • Maximum contribution for 2009 and 2010 is $5,000
  • If 50 or older, maximum contribution is $6,000
  • Phase out for MFJ if AGI is between $89,000 -$109,000
• Traditional IRA (nondeductible)
  • Maximum contribution for 2009 and 2010 is $5,000
  • If 50 or older, maximum contribution is $6,000
  • No phase out for contributions
• Roth IRA (nondeductible)
  • Maximum contribution for 2009 and 2010 is $5,000
  • If 50 or older, maximum contribution is $6,000
  • Phase out for MFJ if AGI is between $166,000 -$176,000