What’s New for IRA Retirement Accounts (2012)

Each year the IRS puts out a comprehensive guide to Individual Retirement Arrangements (I always thought IRA stood for Individual Retirement Accounts, but it’s Arrangements). Called IRS Publication 590, it was last released on December 16, 2011. It covers new rules for both 2011 and 2012.

Because the deadline for 2011 IRA contributions was April 17, 2011, we’ll focus on what’s new for 2012.

What’s New for IRAs in 2012

Here are the 2012 highlights from Publication 590:

1. Due Date for Contribution and Withdrawals: For 2012, contributions can be made to an IRA anytime during 2012 or by the due date for filing your return for 2012, not including extensions of time.

2. Modified AGI limit for traditional IRA contributions increased: As we’ve discussed before, there is no income limit for IRA contributions. For those contributions to be deductible, however, there are income limits. In 2012 those limits increased. For those covered by a retirement plan at work, deductions for IRA contributions get phased out if your modified AGI is:

  • More than $92,000 but less than $112,000 for a married couple filing a joint return or a qualifying widow(er),
  • More than $58,000 but less than $68,000 for a single individual or head of household, or
  • Less than $10,000 for a married individual filing a separate return.

For more details, check out my article on IRA Contribution and Deduction Limits page.

3. Modified AGI limit for Roth IRA contributions increased. For 2012, your Roth IRA contribution limit is reduced if your modified AGI is.

  • at least $173,000 and your filing status is married filing jointly or qualifying widow(er). You are disqualified from making any Roth IRA contribution if your modified AGI is $183,000 or more.
  • at least $110,000 and your filing status is single, head of household, or married filing separately and you did not live with your spouse at any time in 2012. You are disqualified from making any Roth IRA contribution if your modified AGI is $125,000 or more.
  • is more than -0- and your filing status is married filing separately, you lived with your spouse at any time during the year. You are disqualified from making any Roth IRA contribution if your modified AGI is $10,000 or more.

You can get more details on our Roth IRA Contribution and Income Limits page.

Published or Updated: April 19, 2012
About Rob Berger

Rob founded the Dough Roller in 2007. A litigation attorney in the securities industry, he lives in Northern Virginia with his wife, their two teenagers, and the family mascot, a shih tzu named Sophie.

Comments

  1. Roth IRAs are great if you are eligible for them, its one way to take advantage of being in lower tax bracket now vs. potentially higher tax bracket later

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