IRA's
Currently .65% APR
The IRS has issued News Release 2011 to announce the 2012 cost-of-living adjustments for IRAs and SEP plans. For the fifth straight year, the IRA contribution limit remains unchanged.
| Married Couples Who Lived Together for at Least Part of the Year (If the couple did not live together at all during the tax year, use the "Single" column.) | ||||
| Joint Tax Return | Individual Returns | Joint Tax Return | ||
| Single, Head of Household, & Unmarried Who IS an Active Participant | Owner IS an Active Participant | Either Owner of Spouse is an Active Participant | Owner is NOT an Active Participant Spouse is Active Participant | |
| TAX YEAR | Individual MAGI | Joint MAGI | Individual MAGI | Joint MAGI |
2011 | $56,000-$66,000 | $90,000-$110,000 | 0-$10,000 | $169,000-$179,000 |
| 2012 | $58,000-$68,000 | $92,000-$112,000 | 0-$10,000 | $169,000-$179,000 |
Changes to Traditional and Roth IRA Limits
For 2012, the phase-out ranges for deducting Traditional IRA contributions and phase-out ranges for making Roth IRA contributions were increased, along with the phase-out ranges for claiming the Saver's Tax Credit. The IRA contribution limit, which is also subject to a cost-of-living adjustment for tax contribution limit, for those age 50 and older, is not subject to a cost-of-living adjustment and remains unchanged at $1000.
Traditional IRA Deductibility Phase-Out Ranges
A single person who is not an active participant can deduct all regular Traditional IRA contributions. If neither spouse of a married couple is an active participant, then both spouses can deduct all regular Traditional IRA contributions, regardless of how they file their federal tax returns.
As always, consult a tax advisor before making any changes.
Income Limits for Making Regular Roth IRA Contributions
The maximum Roth IRA contribution is phased out in a manner similar to the method used to phase out deductibility for Tradional IRA contributions. But in the case of a Roth IRA, this is a phase out of the eligibility to make a regular Roth contribution, whereas the phase-out for Traditional IRAs does not limit the maximum contribution, rather only the amount that can be deducted.
Following are the income phase-out rules for regular Roth IRA contrbutions.
| Tax Year | Single, Head of Household, & Other Unmarried | Married Filing Joint Return | Married Filing Separate Returns |
| 2011 | $107,000 - $122,500 | $169,000 - $179,000 | $0 - $10,000 |
| 2012 | $110,000 - $125,000 | $173,000 - $183,000 | $0 - $10,000 |
Saver's Tax Credit
The income limits for the Saver's Tax Credit are indexed for inflation in 2007 and later years. The base period for this indexing is 2005.
Following are the 2012 income limits for the Saver's Tax Credit:
Married Filing Jointly
| Credit Rate > | 50% | 20% | 10% | Zero |
| 2011 | Up to $34,000 | $34,000 - $36,500 | $36,600 - $56,500 | Over $56,500 |
| 2012 | Up to $34,500 | $34,500 - $37,500 | $37,500 - $57,500 | Over $56,500 |
If you have moved, divorced, separated or have a beneficiary change that you need to make on an IRA please don't hesitate. These changes are very important for tax purposes. In January when 5498 and 1099 forms are mailed, we do not want them in the wrong hands. Please call the IRA representative at (724) 453-1100.
1099 forms contain information for withdraws, rollover, name, address, members tax numbers and federal withholding information....etc.
