2012 IRA Contribution Rules

The deadline to make IRA contributions for tax year 2012 is April 15, 2013.  The maximum contribution is $5,000 of earned income or $6,000 for those 50 and over.   These amounts increase to $5,500 and $6,500 respectively for tax year 2013.

There are income limits which determine whether you can deduct your Traditional IRA contribution or if you qualify to make a Roth contribution.  The following table gives the phase-out range for the most common circumstances. 

Do you qualify to deduct your Traditional IRA contribution?

 If your income is less than the beginning of the phase-out range, you qualify.  If your income is over the phase-out range, you do not.  If your income falls inside the range, you partially qualify.

 

Modified Adjusted Gross Income                                         Phase-Out Range

Single, participates in an employer-sponsored retirement plan

$58,000-$68,000

Married, participates in an employer-sponsored retirement plan

$92,000-$112,000

Married, your spouse participates in an employer-sponsored retirement plan, but you do not.

$173,000-$183,000

 

Do you qualify to contribute to a Roth IRA?

Single

$110,000-$125,000

Married, filing jointly

$173,000-$183,000

 If your filing status differs from those listed above, please contact your advisor and he or she can help you determine whether you qualify.

Tracy H. Allen, CFP®

Financial Advisor

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