IRA Contribution Limits Increased

The IRS announced on October 18, 2012 cost of living adjustments applicable to dollar limitations for IRAs and other retirement plans.  For 2013, the IRA contribution limit is $5,500, up from the 2012 limit of $5,000.  The catch up contribution remains at $1,000 for taxpayers age 50 and over.  The IRA deduction phaseout begins at adjusted gross incomes of $95,000 for married couples and $59,000 for singles.  In other words, if you are married filing jointly and your adjusted gross income is over $95,000, your IRA contribution will not be fully deductible.

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