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CCH can assist you with stories, including interviews with CCH subject experts. Also, the 2012
CCH Whole Ball of Tax is available in print. Please contact:

Leslie Bonacum
(847) 267-7153
mediahelp@cch.com

Eric Scott
(847) 267-2179
eric.scott@wolterskluwer.com

Visit the CCH Whole Ball of Tax site often as new releases and other updates will be posted throughout the tax season.

CCH provides special CCH Tax Briefings on key topics at CCHGroup.com/Legislation.

2012 CCH Whole Ball of Tax

Release (28) | Back to WBOT

2012 CCH Whole Ball of Tax

Contact:
Leslie Bonacum, 847-267-7153, mediahelp@cch.com
Eric Scott, 847-267-2179, eric.scott@wolterskluwer.com

Retirement By the Numbers: Employer Plans, IRAs and the Saver's Credit

Increased Saving Opportunities Across Most Retirement Options

Both IRA contribution levels and contribution limits to employer-sponsored programs are subject to cost of living adjustments (COLAs). After two years of no change in the COLA, it was raised for 2012, and the amount individuals can contribute to these retirement plans increases for 2012.

Additionally, the allowable adjusted gross income (AGI) parameters for all IRAs increased for 2012. Changes also are made to 2012 income thresholds under the Saver’s Credit, which is a nonrefundable tax credit that allows lower- and middle-income retirement plan participants to use elective contributions to reduce their federal income tax on a dollar-for-dollar basis.

Employer-sponsored Programs
Retirement Vehicle	Maximum 2012 Employee Contribution*	Catch-up Contributions
401(k), 457 and 403(b) plans	$17,000 – pre-tax dollars ($16,500 for 2011)	$5,500 (same for 2011)
Roth 401(k), 403(b), and 457 plans	$17,000 – after-tax dollars ($16,500 for 2011)	$5,500 (same for 2011)
SIMPLE plans	$11,500 – pre-tax dollars (same for 2011)	$2,500 (same for 2011)
SARSEP** (Salary Reduction SEP)	$17,000 – pre-tax dollars ($16,500 for 2011)	$5,500 (same for 2011)

IRAs***
Retirement Vehicle	2012 Maximum Contribution Limits*	Catch-up Contributions	Adjusted Gross Income (AGI) Restrictions
Traditional Deductible IRA	$5,000 (same for 2011)	$1,000 (same for 2011)	For active participants in employer provided plan: *Single filers:* under $58,000 phasing out completely at $68,000 ($56,000 phasing out completely at $66,000 for 2011) *Married, filing jointly:* under $92,000 phasing out completely at $112,000 (under $90,000 phasing out completely at $110,000 for 2011)
Traditional Nondeductible IRA	$5,000 (same for 2011)	$1,000 (same for 2011)	N/A
Roth IRA Nondeductible	$5,000 (same for 2011)	$1,000 (same for 2011)	*Single filers:* under $110,000 phasing out completely at $125,000 (under $107,000 phasing out completely at $122,000 for 2011) *Married, filing jointly:* under $173,000 phasing out completely at $183,000 (under $169,000 phasing out completely at $179,000 for 2011)

* Subject to COLAs.

** SARSEPs must have been established prior to January 1, 1997. The maximum contribution and catch-up amounts are the same as for 401(k), 457 and 403(b) plans.

*** Individuals have until April 17, 2012, to make contributions to their IRAs for 2011.

Saver’s Credit****

Retirement
Vehicle

2012 Maximum Credit

Adjusted Gross
Income (AGI) Restrictions

IRAs, Roth IRAs, SIMPLE Plans, 401(k)s and other qualified retirement plans

$1,000 for single filers

$2,000 for joint filers

Single filers: $28,750 or less ($28,250 for 2011)

Head of household filers: $43,125 or less ($42,375 for 2011)

Married, filing jointly: $57,500 or less ($56,500 for 2011)

**** Depending on AGI, the credit ranges from 10% to 50% with lower income taxpayers being eligible for a higher credit. For example, a married taxpayer filing jointly with an AGI of $34,000 or less making a $2,000 retirement plan contribution in 2012 could be eligible for a 50% credit, or $1,000. By contrast, if that same taxpayer had an AGI between $34,001 and $36,500, she would be eligible for a 20% credit, or $400; an AGI between $36,501 and $56,500 would make that same taxpayer eligible for a 10% credit, or $200.

SOURCE: CCH, 2012

Permission for use granted

nb-12-36