A fresh new year is a great time to up your contributions to a retirement plan. Some limitations have changed for 2012 and it is important for everyone that wants to do the maximum contributions to up their contributions in order to do just that. Contact us today if you have any questions on your limits or your current retirement plan options.
- 401(k), 403 (b), most 457 plans and the federal government’s Thrift Savings Plan have increased to $17,000 from $16,500
- Catch-up contributions for those aged 50 and over for the above mentioned plans remains at $5,500
- Simple IRA Plan contribution limit remains at $11,500 and the catch-up contribution limit for Simple IRA Plans remain at $2,500
- The deduction for taxpayers making contributions to a traditional IRA is phased out for singles and heads of household who are covered by a workplace retirement plan and have modified adjusted gross incomes (AGI) between $58,000 and $68,000, up from $56,000 and $66,000 in 2011. For married couples filing jointly, in which the spouse who makes the IRA contribution is covered by a workplace retirement plan, the income phase-out range is $92,000 to $112,000, up from $90,000 to $110,000. For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple’s income is between $173,000 and $183,000, up from $169,000 and $179,000.
- The AGI phase-out range for taxpayers making contributions to a Roth IRA is $173,000 to $183,000 for married couples filing jointly, up from $169,000 to $179,000 in 2011. For singles and heads of household, the income phase-out range is $110,000 to $125,000, up from $107,000 to $122,000. For a married individual filing a separate return who is covered by a retirement plan at work, the phase-out range remains $0 to $10,000.
For complete information,click here to go to irs.gov