Pension Plan Contributions
The most popular Pension plans for small business owners are 401(k) plans, simple 401(k) plans and simple IRA plans.
All pension contributions are based on earned income (income subject to social security and medicare taxes).
Contribution Limits for 2011 are
| Payroll Deduction | Catch-Up | Company | |
| 401(k) | $16,500 | $5,500 | 25% of salary |
| Simple 401(k) | $11,500 | $2,500 | 3% match 2% for all |
| Simple IRA | $11,500 | $2,500 | 3% match 2% for all |
Contributions Allowed Past Age 70.5
| Regular | Catch-Up | |
| Roth IRA | $5,000 | $1,000 |
| Roth Phase Out Ranges | ||
| Single | $105,000 | $120,000 |
| Married | $166,000 | $176,000 |
No Contributions Allowed Past Age 70.5
| Regular | Catch-Up | |
| IRA | $5000 | $1,000 |
| Filing Status | Full Deduction | Phase-Out | No Deduction |
| Traditional IRA if covered by a Plan at Work | |||
| Single, Head of Household | $55,000 or less | $55,000-$65,000 | $65,000 or more |
| Married Filing Jointly | $89,000 or less | $89,000-$109,000 | $109,000 or more |
| Married Filing Seperately | less than $10,000 | $10,000 or more | |
| Traditional IRA if Not covered by Plan at Work | |||
| Single, Head of Household | No Limit | No Limit | No Limit |
| Married Filing Jointly (Spouse not Covered) | No Limit | No Limit | No Limit |
| Married Filing Jointly (Spouse Covered) | $166,000 or less | $166,000-$176,000 | $176,000 or more |
| Married Filing Seperately (Spouse Covered) | less than $10,000 | $10,000 or more | |
