2012 Retirement Account Contribution Limits
You'll be able to stash a little more in your 401(k), 403(b) or Thrift Savings Plan next year. And income limits to deduct IRA contributions will rise.

How much will I be able to contribute to my 401(k) in 2012? Are there new income limits for making tax-deductible contributions to an IRA next year?
The IRS just released the new contribution and income-limit figures for 2012, which in some cases are slightly higher than for 2011.
You’ll be able to contribute up to $17,000 to a 401(k), 403(b), most 457 plans or the federal government’s Thrift Savings Plan in 2012. That’s $500 more than the 2011 maximum contribution limit of $16,500. Workers age 50 and older can continue to make catch-up contributions of up to an extra $5,500 for the year, the same amount as in 2011. If you’ve been contributing the maximum to your 401(k) or other retirement plan, think about boosting your salary deferral amount for 2012.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The maximum IRA contribution limit for 2012 remains unchanged at $5,000 ($6,000 if you are age 50 or older by the end of the year). But the income eligibility limits to deduct IRA contributions have increased. Single filers and heads of household who participate in a retirement plan at work can deduct the maximum IRA contribution if their modified adjusted gross income is $58,000 or less and a partial contribution is their income is up to $68,000 (up from $56,000 and $66,000 in 2011). Individuals who do not participate in a workplace retirement savings plan can deduct their full IRA contribution regardless of income.
For married couples filing jointly, in which the spouse who makes the IRA contribution is covered by a workplace retirement plan, the income phase-out range is between $92,000 and $112,000 (up from $90,000 and $110,000 in 2011). For an IRA contributor who is not covered by a workplace retirement plan but is married to someone who is covered, the deduction is phased out if the couple’s income is between $173,000 and $183,000 in 2012, up from the $169,000 to $179,000 phase-out range for 2011.
The income eligibility limits to qualify for a Roth IRA contribution have increased, too. Single filers and heads of household can make the maximum contribution to a Roth IRA if their income is less than $110,000 in 2012 (or a partial contribution as long as their income doesn’t top $125,000). Those income eligibility limits are up from the $107,000 to $122,000 phase-out range for 2011. Married couples filing jointly will be able to make the maximum contribution to a Roth IRA in 2012 as long as their modified adjusted gross income is less than $173,000 (and a partial contribution if their joint income does not top $183,000). That’s up from the $169,000 to $179,000 phase-out range for married couples in effect for 2011..
Lower-income individuals may qualify for an extra tax break when they contribute to either an IRA or an employer-based retirement plan in 2012. The income limit to qualify for the savers’ credit increases to $57,500 for married couples filing jointly (up from $56,500 for 2011); $43,125 for heads of household (up from $42,375); and $28,750 for singles (up from $28,250). The size of the credit, which ranges from 10% to 50% of your contribution up to a maximum of $1,000 ($2,000 for married couples), shrinks as your income rises and disappears entirely above those thresholds.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.
-
Cord Cutting Could Help You Save Over $10,000 in 10 Years
How cutting the cord can save you money and how those savings can grow over time.
-
The '8-Year Rule of Social Security' — A Retirement Rule
The '8-Year Rule of Social Security' holds that it's best to be like Ike — Eisenhower, that is. The five-star General knew a thing or two about good timing.
-
Ask the Editor, June 27: Tax Questions on Disaster Losses, IRAs
Ask the Editor In this week's Ask the Editor Q&A, we answer tax questions from readers on paper checks, hurricane losses, IRAs and timeshares.
-
Ask the Editor, June 20: Questions on Tax Deductions and IRAs
Ask the Editor In our latest Ask the Editor round-up, Joy Taylor, The Kiplinger Tax Letter Editor, answers four questions on deductions, tax proposals and IRAs.
-
Don't Miss These Four Tax Breaks for Americans Living Abroad in 2025
International Tax U.S. expats can reduce their tax burden by taking advantage of a handful of tax credits and deductions.
-
Ask the Editor, June 13: Questions on Home Sales and Taxes
In our latest Ask the Editor round-up, Joy Taylor, The Kiplinger Tax Letter Editor, answers questions on home sales and calculating tax basis in a home.
-
Ask the Editor, June 6: Questions on Hobby Losses, Medicare
In our latest Ask the Editor round-up, Joy Taylor, The Kiplinger Tax Letter Editor, answers questions on hobby losses, I bonds and Medicare premiums.
-
Ask the Editor, May 30: Questions on the One Big Beautiful Bill
Ask the Editor In this week's Ask the Editor Q&A, we answer tax questions from readers on the House-passed “One Big Beautiful Bill.”
-
Ask the Editor, May 23: Reader Questions on Gifts, Estate Tax
In this week's Ask the Editor Q&A, we answer tax questions from readers on gifts, the estate tax and stepped-up basis upon death.
-
Ask the Editor, May 16 — Reader Questions on Capital Gains
In our latest Ask the Editor round-up, Joy Taylor, The Kiplinger Tax Letter Editor, answers three questions from readers on capital gains.