2012 ROTH IRA
2012 Roth IRA Conversions
The IRS made significant changes to conversion rules starting in 2010.
In the past high income earners with incomes over $100,000 were not allowed to convert to a Roth IRA. Their incomes also kept them from contributing to a Roth IRA.
Starting in 2010 the income cap for conversions has been removed. Now everyone, including high income earners, can convert to a Roth IRA whenever they want as long as they pay the appropriate taxes.
2012 Roth IRA Contribution Limits
Starting in 2012 the maximum contribution you can invest into a Roth IRA is indexed to inflation. Despite inflation ranging in the 3% to 4% range for 2011, the IRS has left the maximum contribution limit unchanged for the 2012 tax year.
For regular contributions the limit is $5,000 in 2012. For catch-up contributions for individuals over age 50 the contribution limit is an additional $1,000, bringing the total to $6,000 per year.
Posted on Mon, December 10, 2012
by Anthony Longano