If you’re looking to supplement your retirement nest egg, two of the best options is saving through a traditional IRA or Roth IRA. Which IRA is best for you may come down to the new 2012 IRA contribution and deduction limits released by the IRS.
Though you may not meet the requirements for both IRAs the important thing is to save as early and often as possible for your retirement. If you don’t have an existing IRA to contribute to, the best online brokers will make it easy to open an IRA.
All 2012 IRA contribution and deduction limits are based on your Modified Adjusted Gross Income or MAGI.
2012 Maximum Contribution Limits
The 2012 Roth IRA and traditional IRA contribution limits did not change from 2011. For both IRAs the maximum amount you’re allowed to contribute is $5,000. You may also be eligible for the additional “catch up contribution” if you’re 50 years old or older by the end of 2012. The “catch up contribution” allows for an additional $1,000 (for a total of $6,000). Continue Reading…