2012 IRA and 401(k) contribution limits

Just a quick post to let you know about some changes to contribution limits for the New Year.  The amount you can contribute to your 401(k) is increasing by $500 in 2012.  The new maximum is $17,000.  Those over 50 can make an additional “catch up” contribution of of $5,500 for a total of $22,500.

IRA limits are staying the same: $5,000 plus an additional $1,000 for those over 50.  Income limits on both Traditional and Roth IRAs are being increased, however, so more people will be able to take a tax deduction for Traditional IRA contributions or be eligible to make Roth contributions.  Touch base with me if you have questions about your specific situation.

Enjoy the day!  It’s going to be 60 degrees in Omaha today.  Not bad for January.

Joe

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