Las Vegas, NV 89107
Salt Lake City, Utah 84047
On Friday, October 20, 2011, the IRS issued News Release 2011-103 which increases the savings levels available under certain plans. For 2012, an employee who participates in a Section 401(k), 403(b), or 457 plan, as well as the federal government’s Thrift Savings Plan, is permitted to have an elective deferral (contribution) up to $17,000 from $16,500 in prior years.
However, the so-called catch up contribution limit for those aged 50 or better remains unchanged at $5,500.
The deduction for taxpayers making contributions to a traditional IRA is phased out for singles and heads of household who are covered by a workplace retirement plan and have modified adjusted gross incomes (AGI) between $58,000 and $68,000, up from $56,000 and $66,000 in 2011. 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 $92,000 to $112,000, up from $90,000 to $110,000. For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple's income is between $173,000 and $183,000, up from $169,000 and $179,000.
The AGI limit for the saver's credit (also known as the retirement savings contributions credit) for low-and moderate-income workers is $57,500 for married couples filing jointly, up from $56,500 in 2011; $43,125 for heads of household, up from $42,375; and $28,750 for married individuals filing separately and for singles, up from $28,250.
IRS news release dated October 20, 2011
EMPLOYEE BENEFIT PLANS