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2012 Retirement Plan Limits

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The new limits for retirement plans in 2012 have just recently been published.  The details of these new limits are below:


The contribution limit (and therefore the deductible contribution limit) for a traditional IRA remains the same in 2012 as in 2011 – at $5,000.  The catch up provision, available to taxpayers age 50 or better, also remains the same at $1,000.

If you’re a Single filer and covered by a retirement plan via an employer, the deductibility phases out when your Adjusted Gross Income (AGI) is over $58,000 and phases out completely at an AGI of $68,000.  This is an increase of $2,000 over the 2011 phase-out range.

If you’re Married and filing jointly and the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is between $92,000 and $112,000, also up from 2011 by $2,000.

If you’re not covered by a workplace retirement plan, the deductibility phase-out range is increased by $4,000 over the 2011 figures.  The phase-out range is between $173,000 and $183,000.

As always, a non-deductible IRA contribution of up to the limits ($5,000 or $6,000 if over age 50) can be made at any income limit.

Roth IRA

The contribution limit in 2012 for a Roth IRA is also the same as 2011 – $5,000 or $6,000 if over age 50.  The income limits have increased a bit for 2012.  The new AGI limit for Roth IRA contributions for married folks filing jointly is increased to $173,000, up from $169,000.  Contribution eligibility is phased out completely for an AGI of $183,000.  For all other filers, the phase-out AGI limit is increased by $3,000 to the 2012 range of $110,000 to $125,000.

401(k), 403(b) and 457 plans

The contribution or deferral limit for these Qualified Retirement Plans (QRPs) for 2012 is $17,000, an increase of $500.  The over 50 catch-up contribution amount remains unchanged for 2012 at $5,500.

The annual compensation limit (against which retirement plan contributions are factored for deductibility by the employer) is increased by $5,000 to the 2012 limit of $250,000.

SIMPLE plans

The contribution limit for SIMPLE IRA plans is unchanged for 2012, at $11,500, with an over-50 catch-up provision of $2,500.

Saver’s Credit

The Saver’s Credit AGI limit is increased for 2012 to $34,500 for married taxpayers filing jointly, which is an increase of $500.  For Head of Household filers, this AGI limit is increased to $25,875, up $375 from 2011.  For all other filers, the saver’s credit AGI limit is increased to $17,250, up from $17,000 in 2011.

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One Comment

  1. [...] you just can’t deduct the contribution from your income for tax purposes.  See the article on 2012 Retirement Plan Limits for more details on how this [...]

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