Chicago, IL -- (SBWIRE) -- 07/23/2012 -- The IRS has announced the 401k limits 2012 for individual taxpayers. $17,000 is the limit that taxpayers will be allowed to put aside in employer sponsored retirement plans for 2012. If you're 50 years old or older, you can put aside an additional $5,500 as a designated catch up type of contribution. The 401k limits 2012 outlined is the maximum amount that a person can save as an elective salary deferral inside a section 401 (k) plan. The IRS uses a process called “inflation indexing” which accounts for various types of cost of living increases. The IRA updates the limits yearly using this formula.
It's important to know the IRA limits 2012, especially if you are using a self directed IRA or investing in a Real Estate IRA. Self directed IRA custodians should be able to provide you with the latest information, although ultimately, you are responsible for your IRA and 401k limits 2012. The IRS has also changed the income ranges where the eligibility to contribute to a Roth IRA 2012 is gradually reduced. These “phase-out” ranges vary according to marriage and family status; be sure to check for your individual circumstances.
The IRS has online help which guides you through this years changes. This help includes the most up to date 401k limits, as well as frequently asked questions and a section for additional resources. As the baby boomers age, retirement topics become more and more important to Americans. It's important to know that IRA limits and rules change depending on age. As an example, rules changes significantly after the age of 50, and again after the age of 70 ½.
To help understand the 401k limits 2012 for IRA contributions and how they effect you, Chicago based IRA Club has information designed to help you get the most out of your Self Directed and Real Estate IRA. You can simply visit them at http://www.iraclub.org or call 888.795.7950 to learn more about 401k limits 2012.