"The Pension Specialists" Blog

IRS Announces 2012 Limits for IRAs and Pension Plans

Today the IRS announced to 2012 limits applying to IRAs and pension plans by issuing IRS news release 2011-103.

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

The maximum SEP contribution for 2012 will increase to $50,000 from $49,000.

The SIMPLE IRA 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.

The 401(k) elective deferral contribution limits do change for 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.

The compensation ranges applying to deductible 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 filing status is married but filing a separate return is unchanged at $0 - $10,000.

The compensation ranges applying to Roth IRA contributions have increased for 2012.

The 2012 compensation range applying to 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 a separate return is unchanged at $0 - $10,000.

The compensation ranges applying to a savers tax credit also will increase. The new income ranges will be covered in the October issue of the Pension Digest.

CWF will be revising its brochures and IRA Forms to incorporate the 2012 limits.