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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.
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.
The contribution limit for SIMPLE IRA plans is unchanged for 2012, at $11,500, with an over-50 catch-up provision of $2,500.
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.A Social Security Owner's Manual, 2013 Edition, can be purchased by clicking this link. If you'd prefer the Kindle version (and let's face it, ALL the cool kids do!), you can find that at this Kindle version link.