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Education Savings Account	Contribution Limits
Traditional IRA Deduction	Catchup Contributions

Education Savings Account
The contribution phase-out range for ESA joint filers is $190,000 to $220,000 and single filers $95,000 to $110,000.

Traditional IRA Deduction
Traditional IRA contributions are limited to $5,000 in 2009 and 2010. However, if you're age 50 or older, you qualify to make catch-up contributions (limited to $1,000 in 2009 and 2010).

Traditional IRA Tax-Deductibility for 2009
	Single Tax Filers	Married, Filing Jointly	Married, Filing Separately
Full Deduction	You are not covered by an employer-sponsored retirement plan. -or- You are covered by an employer-sponsored retirement plan and your MAGI is $55,000 or less.	Neither you nor your spouse are covered by an employer-sponsored plan. -or- You are covered by an employer-sponsored retirement plan and your MAGI is $89,000 or less.
Partial Deduction	You are covered by an employer-sponsored plan and MAGI is more than $55,000 but less than $65,000.	You are covered by an employer-sponsored plan, and your MAGI is more than $89,000 and less than $109,000. You are not covered by an employer-sponsored plan but your spouse is, and your MAGI is more than $166,000 but less than $176,000.	You are covered by an employer-sponsored plan, and your MAGI is less than $10,000.
No Deduction	You are covered by an employer-sponsored plan and your MAGI is $65,000 or more.	You are covered by an employer-sponsored plan, and your MAGI is $109,000 or more. You are not covered by an employer-sponsored plan but your spouse is, and your MAGI is $176,000 or more.	You are covered by an employer-sponsored plan, and your MAGI is $10,000 or more.

Traditional IRA Tax-Deductibility for 2010
	Single Tax Filers	Married, Filing Jointly	Married, Filing Separately
Full Deduction	You are not covered by an employer-sponsored retirement plan. -or- You are covered by an employer-sponsored retirement plan and your MAGI is $56,000 or less.	Neither you nor your spouse are covered by an employer-sponsored plan. -or- You are covered by an employer-sponsored retirement plan and your MAGI is $89,000 or less.
Partial Deduction	You are covered by an employer-sponsored plan and MAGI is more than $56,000 but less than $66,000.	You are covered by an employer-sponsored plan, and your MAGI is more than $89,000 and less than $109,000. You are not covered by an employer-sponsored plan but your spouse is, and your MAGI is more than $167,000 but less than $177,000.	You are covered by an employer-sponsored plan, and your MAGI is less than $10,000. You are not covered by an employer-sponsored plan but your spouse is, and your MAGI is $10,000 or less.
No Deduction	You are covered by an employer-sponsored plan and your MAGI is $66,000 or more.	You are covered by an employer-sponsored plan, and your MAGI is $109,000 or more. You are not covered by an employer-sponsored plan but your spouse is, and your MAGI is $177,000 or more.	You are covered by an employer-sponsored plan, and your MAGI is $10,000 or more. You are not covered by an employer-sponsored plan but your spouse is, and your MAGI is $10,000 or more.

Contribution Limits

Tax Year	Traditional OR Roth IRA** (Maximum per taxpayer not account or type)	SIMPLE (Pre-tax deferral maximum)	SAR-SEP (Pre-tax deferral maximum)	ESA (Maximum per child)
2201	$2000	$6500	$10,500	$500
2002	$3000	$7000	$11,000	$2,000
2003	$3000	$8000	$12,000	$2,000
2004	$3000	$9000	$13,000	$2,000
2005	$4000	$10,000	$14,000	$2,000
2006	$4000	$10,000	$15,000	$2,000
2007	$4000	Indexed for inflation in $500 increments beginning in 2007		$2,000
2008 & after	$5000	Indexed for inflation in $500 increments beginning in 2007		$2,000
The maximum regular contribution amount can be adjusted for inflation in 2009 & 2010. *This includes Traditional IRA contributions made by an employee into their own SEP IRA account.

Catchup Contributions

The Tax Relief Reconciliation Act of 2001 allows individuals age 50 or older to make additional contributions called “catchup contributions.” Catchup contributions can be made into IRAs or 401(k), 403(b), SAR-SEP, SIMPLE or 457 plans.

Additional Amount That Can Be Contributed
Tax Year	IRA*	401(k), SAR-SEP, 403(b), 457	SIMPLE
2201	$0	$0	$0
2002	$500	$1000	$500
2003	$500	$2000	$1,000
2004	$500	$3000	$1,500
2005	$500	$4,000	$2,000
2006	$1000	$5,000	$2,500
2007	$1000	Amounts will be adjusted for inflation
* Can be to either a deductible or Roth IRA

This information may answer some of your questions, but it is not intended as a comprehensive analysis of this complex topic. First Clearing, LLC periodically provides information to clients. No one should infer that because of this service First Clearing, LLC assumes any fiduciary duties. In addition, such services should not be relied upon as your only source of information. Competent tax and legal advice should always be obtained.