It’s that time of year… time to start planning for 2012. How will you fund your IRA, 401k, 403b, and other retirement plans in 2012? The rules are not substantially changed. Here is a brief summary to help you. Also, please remember each type of plan has different beneficiary rules so work with a qualified California estate planning attorney to make sure your beneficiary designations are right for you!
The maximum amount you can contribute to a traditional IRA or Roth IRA in 2012 remains at a $5,000 cap which is unchanged from 2011. The maximum catch-up contribution for those age 50 or older remains at $1,000. You can contribute up to $17,000 into your 401k in 2012 with an additional $5,500 for those in the “catch-up” category (age 50 and older). For simple IRA’s you can contribute $11,500 in 2012 or up to $14,000 if 50 or older. Of course the contributions limits are subject to how much income you make so bear that in mind.
Also, they have slightly raised the deduction income limits for IRAs but that won’t matter until tax time in April 2013 so I won’t bore you with that now.
Have a great day… and keep funding those retirement accounts! -John