Since it is the new year the IRS released their 2012 official updates for Roth IRA contribution limits in 2012 using Publication 590.
Roth IRA Contribution Limits 2012
There have been many exciting changes this year for Roth IRA owners, none more exciting than the increase in contribution limits. Almost all of the phase-out values have increased this year which means that you may be able to contribute more if you were limited last year.
For singles the following changes are in place for 2012:
- While the 2011 lower cut-off point was $107,000, it is now $110,000; just a quick refresher if you don’t remember what this means: if your taxable income is less than this amount you can make your maximum contribution.
- The upper cut-off point rose along with the lower point, up to a new value of $125,000. This means that as long as you do not have a taxable income above that point, you can still contribute to your Roth IRA.