2012 IRA Contribution Limits and Rules

2012 IRA Contribution Limits and Rules
     The 2012 IRA Contribution limits have changed quite a bit since last year. Not in how much the limits are but in how they are calculated if you meet certain criteria. Most people will be the same as last year since there was basically zero inflation. However if you get a defined benefit pension from work or some type of 457 plan or 403b plan then you may have a partial  IRA deduction.
2012 IRA Contribution Limits If Covered By A Retirement Plan

Filing Status                            Full Deduction           Phase Out              No Deduction               Single Head of Household       $58,000.00 or less        $58,000-68,000      $68,000.00 

Married Filing Jointly               $92,000.00 or less        $92000-$112000    $112,000.00 or more

Married Filing Separately                                              Less than $10,000   $10,000 or more

2012 IRA Contribution Limits If Not Covered By A Retirement Plan

Filing Status                             Full Deduction            Phase Out      No Deduction

Single Head of Household         no limit                        no limit           no limit

Married Filing Jointly                no Limit                       no Limit         no Limit

Married Filing Jointly Spouse                                         less than          $10,000 or more

Covered                                                                            $10,000                           

Contribution Limits

     The typical contribution limits are $5,000.00 if you did not reach the age of 50 before the end of the year. If however you did reach the age of 50 before the end of the year then there is an additional catch up provision of $1,000.00 to help you as the name implies catch up with your retirement since we didn't have all these fancy 401k's and IRAs and things for all these years.
So as you can see this is all a little different than it was before but it's basically just the a different way to do the same old thing. So take advantage of your IRA it's still a good deal and it's something that goes away if you don't use it you lose it. So definitely use it.

New Airline Rules Make Prices More Transparent

We All Love A Cheap Flight

Baby Boomer Vacation

     We all love a cheap flight. Say flying from Los Angeles to Las Vegas for $39.00. It's okay I know you love it too. Heck, we all love it. It sounds so good. But then we find out how many extra charges they tack onto the price of that ticket. There is an Airport Passenger and Facility Charges fee up to $18.00, Federal Segment Fees of $3.70 per segment (which is takeoffs and landings), Sept. 11 Fees of $2.50 per Segment. So as you can see that Airline Ticket doesn't really cost you $39.00.
     British Airways is notorious for this they are typically the cheapest flight to Europe about $600.00 but when you add in all the fees it actually costs about $1200.00. So maybe not the cheapest deal in town.
The New Airline Rules
     The new airline rules basically say that all the fees will be put into the advertised price of the ticket. So that $39.00 cheap ticket you got and were so happy about is going away, and what it's being replaced by is an advertised price based in reality. So it may be advertised as $79.00 but that is all you will pay. Pretty good deal right? I think so. Isn't truth in advertising great? I think in the long run this could cause some of the airlines to have to lower some of these fees in order to compete. As long as these fees were in the dark and they could spring them on you at the last minute you would still buy the ticket since you couldn't compare them. But now you can compare apples to apples. In the long run this will be good for travelers.
Airlines Must Notify You of Changes To Flight Times
     Airlines must notify you when your flight has been cancelled or is delayed due to weather or for whatever reason. They must notify you using whatever method possible be that text, phone call, email however possible so that you are not at the airport for three hours waiting for a plane that won't come. If they fail to do that they will be fined. These are all good steps in protecting passengers. I think this is a good start. What do you think? Reply with your thoughts in the comments. If you like what you read here please follow this blog or give it a +1.
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