Ultimate IRA Cheat Sheet

2012IRA Contribution {2012}Cheat Sheet Roth IRA Traditional IRA Simple IRA SEP IRA 1. Roth IRAS 1. No Taxes on Capital gains or dividends 2. Tax-free growth - No tax on retirement withdrawals 3. Contributions are not tax deductible Max Contribution Limits: $5000 Catch-Up Contributions Age 50+: $1000 Additional (Total combined contributions to Roth and/or traditional IRAS may not exceed these amounts) Roth IRA Income Limits Use this 2012 IRA contribution limits chart to find your maximum contribution based on income. Income Your Tax Filing Status (Modified AGI) Contribution Limit Up to $110,000 Up to the maximum Single • Head of household • Married filing separately Between $110,000 and $125,000 Phased-out Contributions (and you and your partner did not live together.) Above $125,000 Ineligible • Married Filing Jointly Less than $173,000 Up to the maximum Between $173,000 and $183,000 Phased-out Contributions More than $183,000 Ineligible • Married Filing Separately $0 Up to the maximum Phased-out Contributions Between $0 and $10,000 Above $10,000 Ineligible For more information, visit: http://bit.ly/roth-ira 2. Traditional IRAS 1. No Taxes on Capital gains or dividends 2. Tax-deferred growth - Gains taxable upon withdrawal 3. Contributions are deductible Max Contribution Limits: $5000 Catch-Up Contributions Age 50+: $1000 Additional (Total combined contributions to Roth and/or traditional IRAS may not exceed these amounts) Traditional IRA Deduction Limits Use the following 2012 IRA deduction chart to determine your maximum deduction based on income. a. If You ARE Covered by Another Plan at Work Your Income Modified Gross Adjusted 2012 Traditional IRA Limit Your Tax Filing Status Beneath $58,000 Full Deduction • Single • Head Between $58,000 and $68,000 Phased-out deduction of household Above $66,000 Ineligible Married Less than $92,000 Full Deduction up to the maximum Filing Jointly Between $92,000 and $112,000 Phased-out Deduction More than $112,000 Ineligible • Married Filing Separately Between $0 and $10,000 Phased-out Deduction Above $10,000 Ineligible b. If You Are NOT Covered by Another Plan at Work 2012 Traditional IRA Limit Your Tax Your Income Modified Filing Status Gross Adjusted Anything Full Deduction • Single • Head of household Less than $173,000 Full Deduction up to the maximum • Married Filing Jointly Between $183,000 and $183,000 Phased-out Deduction More than $183,000 Ineligible • Married Filing Separately Between $0 and $10,000 Phased-out Deduction Above $10,000 Ineligible For more information, visit: http://bit.ly/ira-limits 1. Employers required to contribute 3. Simple IRAS 2. Similar to 401k 3. Easy Setup Max Contribution Limits: $11,500 Catch-Up Contributions Age 50+: $2500 Additional If you participate in additional salary reduction plans offered by your employer, total contributions may not exceed $17,000 not including catch-up contributions. For Employers Matching Contributions - Up to 3% Non-elective Contributions - 2% of employee's salary For more information, visit: http://bit.ly/simple-ira 4. SEP IRAS 1. Contributions are Deductible 2. Highest Contribution Limits 3. Low Administrative Costs Max Contribution Limits For Self-Employed and Small Business Owners 25% of an Employee's Salary or $50,000 Whichever is smaller Catch-Up Contributions Age 50+: None Allowed If you participate in additional salary reduction plans offered by your employer, total contributions may not exceed $17,000 not including catch-up contributions. For Employees If your SEP IRA allows for non-SEP contributions, then you can make tax-deductable contributions up to your maximum IRA limit - generally $5000-6000. For more information, visit: http://bit.ly/sep-ira