For Retirement Accounts, 2012 Can’t Get Here Soon Enough

10:04 pm Asset Protection, Estate Planning, Retirement Planning

MoneyBills0202087 s 150x150 For Retirement Accounts, 2012 Can’t Get Here Soon EnoughThe last few years have played havoc with many people’s retirement accounts, so having something to look forward to is a welcome diversion from the continued fluctuations of the stock market.

There are some welcome changes coming in 2012 for retirement account holders, according to a recent U.S. News Money report, including:

Higher 401(k) contributions – you can sock away an additional $500 next year after the contribution limit increases to $17,000 from $16,500 this year.  Unfortunately, catch-up contribution limits for those over the age of 50 remain at $5,500.

Higher IRA income limits — The tax deduction for traditional IRA contributions will be phased out for singles and heads of households with workplace retirement plans who have modified adjusted gross incomes between $58,000 and $68,000 in 2012 ($92,000 to $112,000 for couples), up $2,000 from 2011. For IRA owners without a retirement plan at work the deduction is phased out if the couple’s income is between $173,000 and $183,000, up $4,000 from last year.

Higher Roth income limits – The income limits for singles and heads of household will increase by $3,000 in 2012.  For married couples who file jointly, the income limit increased by $4,000.

Expanded saver’s credit – income limits to qualify for a credit increase by $1,000 to $57,500 for married couples filing jointly and by $750 to $43,125 for heads of household.

Contact us today and let our Newport Beach law firm help you with all your financial planning needs.

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