Retirement Contribution Limit Updates for the New Year

Although we're now about a month in to the new year, it is not too late to fund an Individual Retirement Account (IRA) for 2011. In most cases you can make your contribution up until the tax-filing deadline, Tuesday, April 17th.

2012 Traditional & Roth IRA Contribution Limits

The accompanying table reflects the 2012 income limits and contribution limits for Roth and Traditional IRAs. Your tax advisor can help determine which option is best for you; you can also learn more about your IRA options here on our website.

2012 Contribution Limits

Traditional IRA and Roth IRA Contribution Limits


Up to age 50


Catch Up Contributions Provision Age 50+


Traditional IRA Contribution and Modified Adjusted Gross Income Limits


Single or Head of Household - Active Participant

$58,000 - $68,000

Married Filing Joint - Active Participant


Married Filing Separately - Active Participant


Roth IRA Contribution Limits and Modified Adjusted Gross Income Phase-Out Ranges


Single Individual, Head of Household, or Married Filing Separately (did not live with spouse at any time during the year)


Married Filing a Joint Income Tax Return


Married Filing Separate Tax Returns (lived with spouse at any time during the year)


For specific tax advise please consult a qualified tax professional
Source:,,id=96461,00.html and Publication *560, 970,,id=211334,00.html

Employee Sponsored Retirement Plans

If your employer offers a retirement plan such as a 457(b), 401(k) or 403(b), contribution limits are going up for 2012. If you're younger than 50, the new limit is $17,000; if you're 50 or older, the 2012 total pre-tax maximum contribution is $22,500.

Also if you're 50 or older, you are allowed to make "catch-up" contributions to your employer sponsored plan as a result of the Restoring Earning to Lift Individuals and Empower Families (RELIEF) Act of 2001. The catch-up contributions limit is $5,500, and these contributions are designed to help people who got a late start - or have been procrastinating on their retirement savings - to be better prepared for retirement.

Assistance Awaits You

Our CFS* Financial Advisors are available to assist you with retirement planning. Dennis Adams is available at 415.674.4845, and Stephen Seewer is available at 415.674.4846.

*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. ("CFS"), a registered broker-dealer (FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. SF Fire Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members.