Elective deferrals for 401(k), 403(b), most 457 plans and the Federal Thrift Savings Plan is increased to $17,500. Catch-up contributions for age 50 and over remain unchanged at $5,500.
Traditional IRA contribution deductions for those covered by an employer retirement plan are phased out for singles and heads of household with modified adjusted gross income between $59,000 and $69,000; married couples filing jointly income phase out range is $95,000 to $115,000; Contributors not covered by an employer retirement plan and married to someone who is, has a phase out based on the couple’s income between $178,000 and $188,000.
Contributions to a Roth IRA has a phase out range for married couples of $178,000 to $188,000; singles and heads of household income phase out range is $112,000 to $127,000.
The Saver’s credit for low and moderate income workers AGI limit is $59,000 for married couples, $44,250 for heads of household and $29,500 for singles or married filing separately.
The limitation on the annual benefit under a defined benefit plan is increased to $205,000.
The limitation for defined contribution plans is increased to $51,000.
The limitation regarding SIMPLE retirement accounts is increased to $12,000.
For the complete announcement covering all retirement plan changes, visit IRS.gov for Newswire release IR-2012-77.
- IRS raises 401(k) contribution limit to $17,500 (money.cnn.com)