2012 IRA Contribution Limits (& 2011)
Do you know everything you need to know about your 2011 and 2012 IRA Contribution Limits? Federal regulations that cover Roth, Traditional, Simple and Sep IRAs, your 401k limits, as well as income limits for all accounts are in flux. Each year, the IRS changes the rules governing individual retirement accounts, so it is important to stay current on the new regulations for your IRA, especially when opening a Roth IRA.
There are some essential regulations you should know. Two sets of rules this year to govern your maximum contribution to your individual retirement account. One set of regulations if you are under 50 this year, and another set of rules if you turn 50 or older this year.
If you are under 50 this year, the maximum IRA limit for contributions that you can make is five thousand dollars, up to the amount you made in taxable income in 2011 or 2012. So if you only made four thousand dollars this year, this is the maximum you can contribute. This applies to both traditional and Roth IRA limits.
If you turn 50 or older this year the most you can contribute to your individual retirement account is six thousand dollars, up to but not exceeding your 2011 or 2012 taxable income. This amount includes the five thousand dollar limit that everyone qualifies for, as well as an addition one thousand catch-up contribution. Income limits apply!
Maximums for Roth IRAs are the same, but keep the following in mind. The rules above apply to both traditional and Roth IRAs. If you have both types of accounts, it is important to know that the limits above apply to combined contributions. So if you are under 50, you can invest two thousand dollars into your traditional IRA and up to a three thousand maximum into your 2011 Roth IRA, or any other combination as long as the total doesn’t exceed five thousand dollars. If you are over 50, any combination of investment up to six thousand dollars is allowed by the federal government.
Upper income limits also apply! Read about Roth IRA Rules for 2012 for more information on these restrictions. (for Traditional IRA limits, see below.)
Essential Individual Retirement Account Information:
2011 Traditional IRA Income Limits. The federal government places upper limits on how much you can contribute to a traditional IRA, which varies from individual to individual. The limits are based on age, tax filing status and your modified AGI – or your adjusted gross income. Read about the 2011 – 2012 traditional IRA income limits for more.
Deadlines – The IRS places different deadlines for each type of retirement account. Missing the deadline can prove costly to your savings and the growth of you funds. Find your 2011 and 2012 Individual Retirement Account IRA deadline information in our master mega document.
SEP IRA Contribution Limits. SEP-Individual Retirement accounts are usually intended for sole-proprietorship business owners. These accounts have their own regulations for contributions and income limits, which most find extremely complex. Read about SEP Maximum for 2011 & 2012.
Simple IRA Contribution Limits. Despite their name, most people find Simple IRAs anything but simple. These are great plans with higher limits, so be sure to take advantage of the increased maximums. Learn more about Simple IRA Limits for 2011 and 2012.
The IRA Contribution Cheat Sheet – We’ve made it simple to understand the 2012 IRS rules for your retirement account using a single document. Email 2012 IRA Cheat Sheet to clients, print it to hang on your wall, or embed the graphic on your own website or blog.
