Taxes » Retirement Plan Contribution Limits
The Internal Revenue Service has different contribution limits for different types of retirement accounts, and keeping up with them can be challenging. If you are 50 or older, you are eligible to make additional catch-up contributions, adding to the confusion.
Below are the limits on 2011 retirement plan contributions for various plan types. You can make contributions for individual retirement accounts, or IRAs, all the way up to the tax filing deadline of April 17, 2012 (the later date is due to a federal holiday in Washington, D.C.). We provide the 2012 amounts to help in your retirement planning.
Limits on contributions
| Plan type | 2011 limits | 2012 limits |
| IRA, traditional and Roth: |
Under age 50 | $5,000 | $5,000 |
Age 50 and older | $6,000 | $6,000 |
| Deferred contribution plans e.g., 401(k), 403(b) and 457 plans: |
Under age 50 | $16,500 | $17,000 |
Age 50 and older | $22,000 | $22,500 |
| SIMPLE plans: |
Under age 50 | $11,500 | $11,500 |
Age 50 and older | $14,000 | $14,000 |
| Retirement plan saver's tax credit (subject to income limits) | $1,000 | $1,000 |
| Social Security wage base | $106,800 | $110,100 |
In 2011, the maximum income limits for Roth IRA contributions increased a bit, going to $179,000 for married couples filing jointly and $122,000 for single taxpayers. For the 2012 tax year, the income limits are bumped up again at $183,000 for married couples and $125,000 for single taxpayers.
Individuals who want to convert a traditional IRA to a Roth account no longer face the $100,000 income limit. This new law means even if you earn too much to contribute to a Roth IRA in 2011, you were able to contribute to a traditional IRA and then roll that traditional IRA money into a Roth.