Individual Retirement Accounts (IRAs)
Contribution Levels | Roth IRA Eligibility | Roth Conversions | Important Deadlines
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Roth IRA Eligibility |
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| If your tax status is… | …you can contribute to a Roth IRA if your modified
adjusted gross income (MAGI) is less than… |
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| 2011 | 2012 | |
| Married, filing jointly | $179,000 | $183,000 |
| Single | $122,000 | $125,000 |
Roth Conversion Eligibility
Everyone still qualifies to convert a traditional IRA or SEP IRA to a Roth IRA in 2011. There are no income restrictions. For conversions made in 2010, the income tax owed on a conversion can be paid in 2010, or the taxable income can be spread equally in 2011 and 2012.
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 2012
January 1, 2012
First day to contribute money to your Traditional IRA or Roth IRA for 2012.
April 17, 2012
Deadline for making Traditional IRA and Roth IRA contributions for 2011.
This year, April 15 falls on a Sunday, and Emancipation Day, a holiday observed in the District of Columbia, falls on Monday, April 16. According to federal law, District of Columbia holidays impact tax deadlines in the same way that federal holidays do; therefore, all taxpayers will have two extra days to file this year. (Remember to tell your IRA custodian that you are making a contribution for the 2011 tax year.)
October 15, 2012
Deadline for re-characterizing 2011 Traditional IRA contributions, Roth IRA contributions and Roth IRA conversions.
December 31, 2012
Deadline for taking 2012 Required Minimum Distributions (RMDs). Individuals attaining age 70 ½ in 2012 may delay taking the RMD until April 1, 2013.
Deadline for distributing or transferring Traditional IRA or SIMPLE IRA assets to a Roth IRA as a 2012 conversion.
