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.
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