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The Internal Revenue Service has released a detailed list of pension plan and other retirement-related contribution limitations for 2012.
The changes, triggered by an increase in the cost-of-living index, mainly consist of the following:
- The elective tax-deferred contribution limit for employees who participate in 401(k), 403(b) and most 457 plans increases from $16,500 to $17,000.
- The catch-up contribution limit for those age 50 and over stays 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 of $58,000 to $68,000, up from $56,000 to $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 isn’t 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 $173,000 to $183,000, up from $169,000 to $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 201. 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.
For the full IRS announcement, go here.