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and you earn $50,000, you could only contribute $5,000.)
• Individual Retirement Accounts (IRAs). The maximum annual contribution to IRAs increases by $500 to $5,500 (plus an additional $1,000 if 50 or older - unchanged from 2012). Maximum contributions to traditional IRAs are not impacted by personal income, but if your modified adjusted gross income (AGI) exceeds certain limits, the maximum amount you can contribute to a Roth IRA gradually phases out:
• • For singles/heads of households the phase-out range is $112,000 to $127,000 (increased from $110,000 to $125,000 in 2012). Above $127,000, you cannot contribute to a Roth.
• • For married couples filing jointly, the range is $178,000 to $188,000 (up from $173,000 to $183,000 in 2012).

• Keep in mind these rules for deducting traditional IRA contributions on your federal tax return:
• • If you're single, a head of household, a qualifying widow(er) or married and neither spouse is covered by an employer-provided retirement plan you can deduct the full IRA contribution, regardless of income.
• • If you are covered by an employer

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