Tag Archives | Retirement plans

Good news for tax-deferred accounts: Retirement plan limits are rising

Trying to pump as much as you can into tax-deferred retirement accounts? The government’s calculation of inflation is coming to help you a bit in 2012.
For this year, most people will be able to put a little more into their retirement accounts and get a current tax break. Here’s a quick summary:
-The top amount you can put into a 401(k) is going from $16,500 in 2011 to $17,000 in 2012.
–Maximum contributions for people who have Simplified Employee Pensions (SEPs), business owners who have 401(k) accounts combined with profit-sharing plans, and other defined contribution plans go to a maximum of $50,000, up from $49,000.
–No changes, though, to the “catch-up” additional contributions for people age 50 and older. And no changes to the maximum contributions allowed for IRAs and Roth IRAs.

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