2012 Contributions & Allowances
2012 Retirement plan contribution limits
- Traditional or Roth IRA $ 5,000
(if 50 or older on December 31) $ 6,000
- SIMPLE-IRA $ 11,500
(if 50 or older on December 31) $ 14,000
- 401(k), 403(b) and 457 plans $ 17,000
(if 50 or older on December 31) $ 22,500
Deductible IRA contribution amounts may be reduced or eliminated if you (or your spouse) are covered by a “qualified retirement plan”. In 2012 there are income limitations for making Roth IRA contributions even if you are not covered by a qualified plan.
Traditional-to-Roth IRA conversions: There are no income limitations but the federal tax on converted amounts must be paid in the year the conversion is done.
SEP-IRA
25% of eligible compensation up to $50,000
Mileage rates beginning January 1, 2012
- Business mileage 55.5 cents per mile
- Medical or Moving mileage 23 cents per mile
- Charitable mileage 14 cents per mile
2012 Social Security tax rates and wage limits
- The employee portion of FICA tax is 4.2% (0.042) on the first $110,100 earned
(maximum tax = $ 4,624.20) Until February 29, 2012 – Check back for updates.
- The employer portion of FICA tax remains at 6.2% (.062) on the first $110,100 earned
(maximum tax = $6,826.20)
- Medicare portion of tax is 1.45% (0.0145) with no limit
(all wages are taxed)
Federal Minimum Wage
Increases to $ 7.25 per hour as of November 19, 2009.
North Carolina’s minimum wage is the same as federal. Some states have their own rate (check with the state Department of Labor).
Some types of pay (i.e. tipped employees) are exempt or have special rules.
