Are you one of the lucky ones who were able to contribute to your IRA in 2009? If so, you should be aware of the federal income tax changes as it pertains to traditional IRA contributions and Roth IRA contributions for 2009. They are as follows:

Modified AGI (Adjusted Gross Income) limit for traditional IRA contributions increased.
For 2009, if you are covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is:

• More than $89,000 but less than $109,000 for a married couple filing a joint return or a qualifying widow(er),
• More than $55,000 but less than $65,000 for a single individual or head of household, or
• Less than $10,000 for a married individual filing a separate return

If you either live with your spouse or file a joint return and your spouse is covered by a retirement plan at work, modified AGI is more than $166,000 but less than $176,000. If your modified AGI is $176,000 or more, you cannot take a deduction for contributions to a traditional IRA.

Modified AGI limit for Roth IRA contributions increased.
For 2009, your Roth IRA contribution limit is reduced (phased out) in the following situations.

• Your filing status is married filing jointly or qualifying widow(er) and your modified AGI is at least $166,000. You cannot make a Roth IRA contribution if your modified AGI is $176,000 or more.
• Your filing status is single, head of household, or married filing separately and you did not live with your spouse at any time in 2009 and your modified AGI is at least $105,000. You cannot make a Roth IRA contribution if your modified AGI is $120,000 or more.
• Your filing status is married filing separately, you lived with your spouse at any time during the year, and your modified AGI is more than -0-. You cannot make a Roth IRA contribution if your modified AGI is $10,000 or more.

  Modified AGI limit for retirement savings contributions
  For 2009, you may be able to claim the the retirement savings contributions credit if your modified AGI is not more than:

  • $55,500 if your filing status is married filing jointly,
  • $41,625 if your filing status is head of household, or
  • $27,750 if your filing status is single, married filing separately, or qualifying widow(er).

  Temporary Waiver of required minimum distribution rules.
  No minimum distribution is required from your traditional or Roth IRA for 2009

  source: irs.gov