- The elective deferral (contribution) limit for employees who participate in
401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan
is increased from $16,500 to $17,000.
- The catch-up contribution limit for those aged 50 and over remains unchanged
at $5,500.
- 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.
- The AGI limit for the saver’s credit (also known as the retirement savings contributions credit) for low-and moderate-income workers is $57,500 for married couples filing jointly, up from $56,500 in 2011; $43,125 for heads of household, up from $42,375; and $28,750 for married individuals filing separately and for singles, up from $28,250.
Should you need further information on this announcement visit www.peoplelease.com for all of your retirement planning needs.
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