2012 Thrift Savings Plan (TSP) Contribution Limits
The Internal Revenue Service (IRS) today announced cost of living adjustments
affecting dollar limitations for the Thrift Savings Plan (TSP) and other
retirement-related items for tax year 2012.
- The elective deferral (contribution) limit for employees
who participate in 401(k), 403(b), most 457 plans, and the federal government's
Thrift Savings Plan is increased from $16,500 to $17,000.
- The catch-up contribution limit for those aged 50 and over
remains unchanged at $5,500.
- The deduction for taxpayers making contributions to a traditional IRA is
phased out for singles and heads of household who are covered by a workplace
retirement plan and have modified adjusted gross incomes (AGI) between $58,000
and $68,000, up from $56,000 and $66,000 in 2011. For married couples
filing jointly, in which the spouse who makes the IRA contribution is covered by
a workplace retirement plan, the income phase-out range is $92,000 to $112,000,
up from $90,000 to $110,000. For an IRA contributor who is not covered by
a workplace retirement plan and is married to someone who is covered, the
deduction is phased out if the couple's income is between $173,000 and $183,000,
up from $169,000 and $179,000.
- The AGI phase-out range for taxpayers making contributions
to a Roth IRA is $173,000 to $183,000 for married couples filing jointly, up
from $169,000 to $179,000 in 2011. For singles and heads of household, the
income phase-out range is $110,000 to $125,000, up from $107,000 to
$122,000. For a married individual filing a separate return who is covered
by a retirement plan at work, the phase-out range remains $0 to $10,000.
- The AGI limit for the saver's credit (also known as the
retirement savings contributions credit) for low-and moderate-income workers is
$57,500 for married couples filing jointly, up from $56,500 in 2011; $43,125 for
heads of household, up from $42,375; and $28,750 for married individuals filing
separately and for singles, up from $28,250.