{"id":1525,"date":"2011-11-07T17:42:08","date_gmt":"2011-11-07T22:42:08","guid":{"rendered":"http:\/\/www.billlosey.com\/?p=1525"},"modified":"2011-11-07T17:42:08","modified_gmt":"2011-11-07T22:42:08","slug":"changes-in-ira-401ks-for-2012","status":"publish","type":"post","link":"https:\/\/billlosey.com\/knowledge-center\/changes-in-ira-401ks-for-2012\/","title":{"rendered":"Changes in IRA &#038; 401(k)s for 2012"},"content":{"rendered":"<p>The IRS has announced cost-of-living adjustments to IRAs and employer-sponsored retirement plans for 2012, so here is what you need to know about the newly altered contribution limits and phase-outs for these plans.<\/p>\n<p><strong>401(k) &amp; IRA yearly contribution limits.<\/strong> In 2012, these are the annual contribution limits for some popular retirement savings vehicles:<\/p>\n<ul>\n<li>401(k)s, 403(b)s, most 457 plans, Thrift Savings Plan (TSP) &#8211; <strong>$17,000<\/strong> with an additional $5,500 catch-up contribution allowed for those 50 or older. (2012 COLA: $500.)<\/li>\n<li>Traditional &amp; Roth IRAs &#8211; <strong>$5,000<\/strong> with an additional $1,000 catch-up contribution allowed for those 50 or older. (No 2012 COLA.)<\/li>\n<li>Simple IRAs &#8211; <strong>$11,500<\/strong> with an additional $2,500 catch-up contribution allowed for those 50 or older. (No 2012 COLA.)<\/li>\n<li>SEP IRAs &#8211; <strong>$50,000<\/strong> or 25% of an employee\u2019s compensation, whichever is lesser. (2012 COLA: $1,000.)<\/li>\n<li>415(b) defined benefit plans \u2013 the limitation on annual benefits under a defined benefit plan is increased to<strong> $200,000<\/strong>. (2012 COLA: $5,000.)<\/li>\n<\/ul>\n<p><strong>Traditional IRA phase-outs. <\/strong>The new MAGI limits affecting deductions for traditional IRA contributions are:<\/p>\n<ul>\n<li> Singles &amp; heads of household covered by a workplace retirement plan: <strong>$58,000-68,000<\/strong>. (2012 COLA: $2,000.)<\/li>\n<li> Married filing jointly, with spouse making the IRA contribution covered by a workplace retirement plan: <strong>$92,000-112,000<\/strong>. (2012 COLA: $2,000.)<\/li>\n<li> Married filing jointly, IRA contributor not covered by a workplace retirement plan but married to someone who is: <strong>$173,000-183,000<\/strong>. That MAGI range is for a couple rather than an individual. (2012 COLA: $4,000.)<\/li>\n<\/ul>\n<p><strong>Roth IRA phase-outs. <\/strong>The MAGI limits affecting deductions for Roth IRA contributions are set as follows for 2012:<\/p>\n<ul>\n<li>Singles &amp; heads of household covered by a workplace retirement plan:<strong> $110,000-125,000<\/strong>. (2012 COLA: $3,000.)<\/li>\n<li>Married filing jointly: <strong>$173,000-183,000<\/strong>. (2012 COLA: $4,000.)<\/li>\n<li>Married filing separately, with the Roth IRA contributor covered by a workplace retirement plan:<strong> $0-10,000<\/strong>. (No 2012 COLA.)<\/li>\n<\/ul>\n<p><strong>Lastly, a couple of notes for employers. <\/strong>When it comes to defining &#8220;key employees&#8221; in a top-heavy plan, the determination limit goes up $5,000 to $165,000 in 2012. The maximum taxable earnings amount for Social Security increases to $110,100 from $106,800 next year.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The IRS has announced cost-of-living adjustments to IRAs and employer-sponsored retirement plans for 2012, so here is what you need to know about the newly altered contribution limits and phase-outs for these plans&#8230;<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[28,54,34],"class_list":["post-1525","post","type-post","status-publish","format-standard","hentry","category-blog","tag-ira-direct-rollover","tag-ira-yearly-contribution-limits","tag-irs"],"_links":{"self":[{"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/posts\/1525","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/comments?post=1525"}],"version-history":[{"count":0,"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/posts\/1525\/revisions"}],"wp:attachment":[{"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/media?parent=1525"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/categories?post=1525"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/tags?post=1525"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}