IRA Rules
Individual Retirement Account Rules

IRA Rules And Information

 

The 2012 Roth IRA Contribution Limits have been increased as follows:

The maximum annual contribution you can make to an IRA for 2012 is $5,000 if you are under age 50. This amount can be split between a Traditional IRA (which would be tax deductible) and a Roth IRA but the total amount contributed must not exceed $5,000. This limit is assuming you earned at least $5000 in the 2012 calendar year. If you earned less than $5000 then your contribution is limited by the amount you earned.

If you are age 50 or above the contribution limit is raised by $1000 (known as a “catch-up” provision) to a total of $6000. The same rules apply as those under age 50 except for the additional $1000 added to the contribution limit.

 

Changes In The Modified AGI Limits

Married Filing Jointly had a range of $169,000 to $179,000 in 2011 and this was raised to $173,000 to $183,000 for 2012.

Single Individuals / Head Of Household was also raised as well from $107,000 – $122,000 in 2011 to $110,000 – $125,000 in 2012.

For Married Individuals filing separately everything was left unchanged at $0 – $10,000.

This means that if you below the bottom number of the range you can make a contribution up to the maximum limit. If you are within the range, then you are eligible for a reduced contribution limit. If you are above the upper limit then you are not eligible to contribute to a Roth IRA. See the complete IRS Table Below.


2012 Roth IRA Contribution Limits Based On Modified AGI

If You Have Taxable Compensation and
Your Filing Status Is
And Your Modified AGI Is… Then…
married filing jointly or qualifying widow(er) Less than $173,000 you can contribute up to the limit.
at least $173,000 but less than $183,000 the amount you can contribute is reduced.
$183,000 or more you cannot contribute to a Roth IRA.
married filing separately and you lived with your spouse at any time during the year zero (-0-) you can contribute up to the limit.
more than zero (-0-) but less than $10,000 the amount you can contribute is reduced.
$10,000 or more you cannot contribute to a Roth IRA.
single, head of household, or married filing separately and you did not live with your spouse at any time during the year less than $110,000 you can contribute up to the limit.
at least $110,000 but less than $125,000 the amount you can contribute is reduced.
$125,000 or more you cannot contribute to a Roth IRA.


Page Last Reviewed or Updated: October 20, 2011

Source: IRS.gov