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Individual Retirement Accounts (IRAs)

Contribution Levels |  Roth IRA Eligibility |  Roth Conversions |  Important Deadlines

Traditional & Roth IRA Contribution Levels
 

2012*

2013

Up to age 49

 $5000 $5500

Age 50 and up

 $6000 $6500
*This limit can be split between a traditional IRA and a Roth IRA but total contributions cannot exceed this amount. Note: The maximum deductible contribution to a traditional IRA and the maximum contribution to a Roth IRA may be reduced depending on your modified adjusted gross income.**You have until April 15, 2013 to make contributions to your IRA for 2012

SEP IRA Contribution Levels

2012

          

2013

25% of up to $250,000 of compensation

Annual maximum contribution: $50,000

Also applies to Keoghs & profit-sharing plans

          

W-2 Income: Up to 25% of compensation, but no more than $51,000.

Self Employed: Generally up to 20%, but no more than $51,000.

Roth IRA Eligibility
If your tax status is… …you can contribute to a Roth IRA if your modified

adjusted gross income (MAGI) is less than…

  
  2012 2013
Married, filing jointly $183,000 $188,000
Single $125,000 $127,000

Roth Conversion Eligibility

Everyone qualifies to convert a traditional IRA or SEP IRA to a Roth IRA in 2013. There are no income restrictions.

While anyone can convert a traditional IRA to a Roth IRA, not everyone can contribute to a Roth IRA because of MAGI limits (see above).

Important IRA Deadlines for 2013

January 1, 2013
First day to contribute money to your Traditional IRA or Roth IRA for 2013.

April 15, 2013

Deadline for making Traditional IRA and Roth IRA contributions for 2012.

October 15, 2013
Deadline for re-characterizing 2012 Traditional IRA contributions, Roth IRA contributions and Roth IRA conversions.

December 31, 2013
Deadline for taking 2013 Required Minimum Distributions (RMDs). Individuals attaining age 70 ½ in 2013 may delay taking the RMD until April 1, 2014.

Deadline for distributing or transferring Traditional IRA or SIMPLE IRA assets to a Roth IRA as a 2013 conversion.

       
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