IRS 2012 Limits For IRA’s and Pension Plans

The Traditional IRA contribution limits are unchanged at $5,000 if the individual is younger than age 50 in 2012, and $6,000 if he or she attains age 50 or older in 2012.

Compensation ranges applying to deductible Traditional IRA contributions do increase.  The 2012 compensation range applying to a person whose filing status is single, head of household or qualifying widower is $58,000 – $68,000 (up from $56,000 – $66,000).  The 2012 compensation range applying to a person whose filing status is married/joint return and an active participant is $92,000 – $112,000 (up from $90,000 – $110,000).  The 2012 compensation range applying to a person whose filing status is married/joint return but not an active participant is $173,000 -$183,000 (up from $169,000 – $179,000).  The 2012 compensation range applying to a person whose filings status is married but filing a separate return is unchanged at $0 – $10,000.

A SEP, simplified employee pension plan designed for self employed individuals and small business owners, maximum contribution for 2012 will increase to $50,000 from $49,000.

A SIMPLE IRA, Savings Investment Match Plan for Employees, contribution limits are unchanged for 2012.  The maximum elective deferral contribution amount is $11,500 for a person who is younger than age 50 in 2012 and $14,000 if he or she attains age 50 or older in 2012.

A ROTH IRA, after tax dollars, compensation ranges contributions have increased for 2012.  A person whose filing status is single, head of household or qualifying widower is $110,000 – $125,000 (up from $107,000 – $112,000).    The 2012 compensation range applying to a person whose filing status is married/joint return is $173,000 – $183,000 (up from $169,000 – $179,000).  The 2012 compensation range applying to a person whose filing status is married but filing separate return is unchanged at $0 – $10,000.

The 401(k) elective deferral contribution limits do change in 2012.  The maximum elective deferral contribution amount is $17,000 (up from $16,500) for a person who is younger than age 50 in 2012 and $22,500 (up from $22,000) if he or she attains age 50 or older in 2012.

IRS news release 2011-103.

By | 2012-04-05T17:36:38+00:00 April 5th, 2012|Categories: Global Market Update|Tags: , , , |0 Comments

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