The IRS has released cost-of-living adjustments for 2012.  More information on pension limits can be found here.  More information on other COLA adjustments can be found here.  Some highlights:

  • The contribution limit to IRAs remains at $5,000.
  • The income limits on the IRA deduction phaseout and Roth IRA contributions have been increased*.
  • The contribution limit to 401(k) plans increases to $17,000 (up from $16,500).
  • The catch-up contribution limit to 401(k) plans remains unchanged at $5,500.
  • The income limits for claiming “savers credit” on contributions to retirement plans has increased from last year.  The limits are now $57,500 for married filing jointly; $43,125 for head of household; and $28,750 for single and married filing separately.
  • The dependency exemption increases to $3,800 (up from $3,700).
  • Standard deductions are also increasing in 2012:  $11,900 for married couples filing a joint return (up $300); $5,950 for singles and married filing separately (up $150); and $8,700 for heads of household (up $200).
  • The gift tax exclusion amount remains unchanged at $13,000.
*-Here are the phaseout ranges for IRA contributions:  
  • Single and head of household filing status who are covered by a retirement plan:  the traditional IRA deduction phaseout is between $58,000 and $68,000 (up from $56,000 and $66,000).
  • Married filing jointly, spouse who makes the IRA contribution is covered by a workplace plan:  the traditional IRA deduction phaseout is between $92,000 and $112,000 (up from $90,000 and $110,000).
  • Married filing jointly, spouse who makes the IRA contribution is not covered by a workplace plan:  the traditional IRA deduction phaseout is between $173,000 and $183,000 (up from $169,000 and $179,000).
  • For Roth IRAs, here are the phaseout ranges for being able to contribute:  $173,000 to $183,000 for married filing jointly (up from $169,000 and $179,000); $110,000 and $125,000 for single and head of household (up from $107,000 and $122,000); and $0 to $10,000 for a married filing separately spouse is covered by a retirement plan at work (unchanged from 2011).

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