Archive for November, 2011
2012 Roth IRA income limits for individuals and married couples
Individual retirement accounts are designed to provide tax deferred savings for retirement and if you withdraw the amount earlier than specified period then the IRS may charge taxes and penalty on the distributions. Apart from various retirement plans provided by the employer at work and the government, the IRAs were designed to give every individual more control over their retirement savings. The rules of IRA keep changing every year and the current economic situation is also one of the main factors of this change. As the rules changes the Roth IRA income limits also changes every year.
It is very important to understand the rules of Roth IRA if you are planning to open an account. According to the year 2012, the Roth IRA income limit to contribute is $105,000 in case of single individual and $167,000 in case of married couple. If the amount exceeds above $120,000 of individuals and $177,000 for married couple then they are not eligible for any contributions. If the modified adjusted gross income exists between these two limits then they can contribute the amount somewhat less than maximum limit. But in 2012, the IRS has removed the income limits for Roth IRA conversions and individuals with higher income groups got great benefits out of this new law.