Transamerica 401(k) Plan Conversion Log In
IMPORTANT FIGURES
RETIREMENT PLAN DOLLAR LIMITS
(these are the absolute dollar limits. These amounts may be further limited by the actual plan document or IRC Sec 415 and IRC Sec 412 percentage limits)
LIMIT TYPE
2008 2009 to 2011 2012 401(k) Elective Deferral *
$15,500 $16,500 $17,000 IRA/ROTH IRA Limits** $5,000 $5,000 $5,000 DC Dollar Limit $46,000 $49,000 $50,000 DB Max Benefit
$185,000 $195,000 $200,000 Compensation Limit
$230,000 $245,000 $250,000 Taxable Wage Base
$102,000 $106,800 $110,100 Highly Compensated Employee
$105,000 $110,000 $115,000
*/ &** Catchup Amounts for those over age 50 in any plan year |
2008 | 2009 to 2011 |
2012 |
* Plus addl Catch-up Deferrals |
$5,000 | $5,500 | $5,500 |
** Plus addl Catch-up Deferrals |
$1,000 | $1,000 | $1,000 |
IRA Deduction Phase out Limits
(for "active" participants in a qualified plan)
Annual contributions to an IRA and ROTH
are limited to $5,000 beginning in 2009 through 2012. They are reduced by contributions to any other type of IRA (i.e.: ROTH) and are not allowed to be made by individuals
over age 70 1/2. However, not all contributions to IRAs are deductible if you are an
active participant in a Qualified Plan (ie: is the "pension plan" box checked on
your IRS Form W2 for the applicable tax year). Deductions for the IRA contributions
are subject to income limits and phased out as follows:
Tax years |
Single Taxpayer |
Married Filing Jointly |
| 2009 to 2011 | $53,000-$63,000 | $85,000-$105,000 |
| 2012 | $56,000-66,000 | $90,000-$110,000 |
ROTH IRA Limits
Annual contributions to a Roth IRA are $5,000 for 2012 reduced by contributions to any other type of IRA. Not all individuals can make Roth IRA contributions. They are subject to income limit and is phased out. The deductible limits are as follows:
Married taxpayers filing jointly................$173,000 to 183,000
Married taxpayers filing separately...........$0 to $10,000
Single taxpayers..................................... $110,000-$125,000.
ROTH Conversion
For 2012 there is no income limit to be able to convert an IRA to a ROTH IRA. However as a planning strategy, if, you are forced to make a non deductible IRA contribution due current regulations.........you may want to consider making a non deductible IRA contribution and then convert it to a ROTH in the same year. If there are no earnings in the account from the time the IRA contribution is made until the conversion is made there is no current tax event. Earnings will accumulate and be tax free when taken upon a "distributable event" from the ROTH IRA. If the funds remained in the IRA rather than converted the earnings would be fully taxable when withdrawn.
IRC Section 401(a)(4) Minimum Distribution Factors*
| Age | Distribution Period |
Age |
Distribution Period | |
| 70 | 27.4 | 76 | 22.0 | |
| 71 | 26.5 | 77 | 21.2 | |
| 72 | 25.6 | 78 | 20.3 | |
| 73 | 24.7 | 79 | 19.5 | |
| 74 | 23.8 | 80 | 18.7 | |
| 75 | 22.9 | 81 | 17.9 |
* These are uniform life table factors (ie: they are not j&s factors)