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Show Page 8 The Ogden Valley news Volume XIX Issue XXIII January 1, 2012 Boosting Your Retirement Plan Contributions By Jason Alderman For the first time since 2009, the IRS has increased the amount people can contribute to their 401(k) and other defined contribution plans. Effective January 1, 2012, the maximum annual contribution grows by $500 to $17,000, thanks to an increase in the Department of Labor’s Consumer Price Index for Urban Consumers (CPI-U), a common measure of inflation the IRS uses to determine whether or not to increase dozens of tax-related numbers from year to year. That’s good news for people who want to boost their tax-advantaged retirement savings. Here’s an overview of what will and won’t change in 2012 with the more common retirement savings plans: Defined contribution plans - In addition to increasing the maximum allowable annual contribution to 401(k), 403(b), 457(b) and federal Thrift Savings plans to $17,000, these additional factors apply: • People over 50 can also make an additional $5,500 in catch-up contributions (unchanged from 2011). • The annual limit for combined employee and employer contributions increased by $1,000 to $50,000. • Because your plan may limit the percentage of pay you can contribute, your maximum contribution may actually be less. (For example, if the maximum contribution is 10 percent of pay and you earn $50,000, you could only contribute $5,000.) • Company-matching contributions do not count toward your maximum contribution. Individual Retirement Accounts (IRAs) - The maximum annual contribution to IRAs remains unchanged at $5,000 (plus an additional $1,000 if 50 or older). Maximum contributions to traditional IRAs are not impacted by personal income, but if your modified adjusted gross income (AGI) exceeds certain limits, the maximum you can contribute to a Roth IRA gradually phases out: • For singles/heads of households the phase- out range is $110,000 to $125,000 (up from $107,000 to $122,000 in 2011). Above $125,000, you cannot contribute to a Roth. • For married couples filing jointly, it’s $173,000 to $183,000 (up from $169,000 to $179,000 in 2011). Keep in mind these rules for deducting 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 plan and are single or a head of household, the tax deduction phases out for AGI between $58,000 and $68,000 (up from $56,000 to $66,000 in 2011); if married and filing jointly, the phase-out range is $92,000 to $112,000 (up from $90,000 to $110,000 in 2011). • If you’re married and aren’t covered by an employer plan but your spouse is, the IRA deduction is phased out if your combined AGI is between $173,000 and $183,000 (up from $169,000 to $179,000 in 2011). For more details, read IRS Publication 590 at <www.irs.gov> Retirement Saver’ Tax Credit - As an incentive to help low- and moderate-income workers save for retirement through an IRA or company-sponsored plan, many are eligible for a Retirement Savers’ Tax Credit of up to $1,000 ($2,000 if filing jointly). This credit lowers your tax bill, dollar for dollar, in addition to any other tax deduction you already receive for your contribution. Qualifying income ceiling limits for the Retirement Savers’ Tax Credit increased in 2011 to $57,500 for joint filers, $43,125 for heads of household, and $28,750 for singles or married persons filing separately. Consult IRS Form 8880 for more information. Note: Jason Alderman directs Visa’s financial education programs. To Follow Jason Alderman on Twitter at <www.twitter.com/ PracticalMoney> Ogden Clinic Offers Special Holiday Hours Ogden Clinic, a physicianowned, multi-specialty group practice in Weber County, will serve the community this holiday season with special urgent care hours during New Year’s weekend. The distractions of the holiday season often result in unexpected injuries and illnesses that often occur as families gather and celebrate. In anticipation of medical needs during the holiday season, several of Ogden Clinic’s facilities will be open to care for the local community and out-of-town guests Ogden Clinic Locations & Hours Saturday, December 31 Professional Center North: 10 a.m. – 8 p.m. Canyon View: 10 a.m. – 5 p.m. Mountain View: 10 a.m. – 5 p.m. Sunday, January 1 Professional Center North: 10 a.m. – 8 p.m. Ogden Clinic offers high quality and efficient services as an alternative to the emergency room. The clinic’s experienced medical providers are committed to providing the best medical care to every patient. For additional information, visit www. ogdenclinic.com or call 801-475-3000. Providence Canyon Still Closed to Motorized Wheeled Vehicles Logan District Ranger Jennefer Parker is reminding Forest users that Providence Canyon road (Forest Service Road #20090) in Cache County is still closed to motorized-wheeled vehicles. The road is closed for public health and safety, and to prevent any further resource damage by vehicles. Using a motorized-wheeled vehicle is in violation of a road closure. Citations for illegal travel will be issued and can carry penalties from $175 to $5000 fine and/or up to 6 months in jail. Barriers blocking access to the Providence Canyon road have been removed to allow for over snow-machine use. All over snow-machines must remain on the groomed trail from the Forest boundary approximately 1 1/2 miles to the cattle guard just west of the First Waterfall. Off trail over snowmachine use is prohibited in Providence Canyon for public safety, due to hazards created by the extreme flooding in the spring of 2011. This also is to protect big game winter range. Traveling off the groomed trail is in violation of the winter recreation map and carries penalties from $175 to $5000 fine and/or up to 6 months in jail. To obtain a winter recreation map for the Logan Ranger District, please contact the Logan Ranger District office (435-755-3620), which is located at the mouth of Logan Canyon. Snowmobilers are encouraged to learn how to recognize avalanche terrain, how to assess avalanche danger, and how to be prepared to travel safely in avalanche terrain. Nationwide, snowmobilers lead the list with twice the number of avalanche fatalities as any other activity. Avalanche information and daily forecasts are available from the Utah Avalanche Center online at www.UtahAvalancheCenter.org or by phone at 888-999-4019. TRANSPORTATION cont. from page 1 30%. This is on top of ten years of year-over-year ridership increases for the system as a whole. “According to the American Public Transportation Association (APTA), U.S. transit ridership increased by approximately 28 percent from 1996 through 2010, but UTA’s ridership increased by approximately 60 percent during the same time frame. UTA has done all this in the face of a 12% reduction in sales tax revenues as forecast in 2007 and stubbornly high diesel fuel prices. “For their efforts, UTA has been recognized as a leader in transit development nationally, having received the award as one of the best managed mid-sized transit agencies by U.S. News and World Report in 2011 and similar accolades from the American Public Transportation Association.” Highway, the new diverging diamond interchanges on State Road 201 and in Utah County with more to come, the so-called ThrU-turn in Draper, and the installation of dozens of bridges built off-site until they were ready for placement, saving motorists countless hours of congestion. “UTA has been equally proactive with the largest transit construction program in the country on a per capita basis. Its rail network will, within the next 36 months, stretch from northern Weber County to Provo and from Sugar House to West Valley City and the airport, all on time and on budget. “With the recent additions of the West Valley and Mid-Jordan TRAX lines, light-rail ridership is up MILKEN cont. from page 1 recognized by the leading financial publication. Salt Lake City Mayor Ralph Becker noted, “This report, which evaluates our city’s performance on a basis of job growth, wages and GDP, corroborates what we’ve known for some time: Salt Lake City is securing its position as a regional powerhouse. Milken’s findings, combined with outstanding efforts at the state level and our ongoing work to establish sustainable communities; the best public transit in the country; and a one-of-akind neo-urban lifestyle, reflect a Capital City on the move—now, and into the future. Utah metro areas made an impressive showing, with three metros in the Top 25 vs. only one metro recognized last year. The Salt Lake City, Provo, and Ogden metro areas climbed an average 32 positions. Utah’s economy is highly diversified, with pharmaceuticals, medical devices, transportation equipment, financial services, and high-tech companies among others, which continue to grow in strength. The Governor’s Office of Economic Development has worked for many years on defining and encouraging growth in targeted economic clusters, which are now registering great strength in the report. “Ogden led the nation in job growth for the past 12 months, according to Bureau of Labor and Statistics, and this accomplishment has paved the way for these kinds of rankings. We feel very fortunate and excited to be categorized with so many other great communities,” stated Matthew Godfrey, Ogden Mayor. “The Provo Region is benefiting from our solid foundation of hard work, education and entrepreneurism,” said John Curtis, Provo City Mayor. “Provo is seeing more investment in our City than at any time in the past and all indications are that the future is even brighter than what we’re currently experiencing.” Randy Watts, the Mayor of Logan, expressed appreciation at being named Best Performing Small City. “Logan has a very good business base and a top notch University. Logan is also one of the safest places to live. We have very capable citizens who work and live in the beauty of the mountains that surround us. “Utah’s cities have led the economic charge over the past year,” said Spencer Eccles, executive director of the Governor’s Office of Economic Development. “We recognize that communities across the state, large and small, have all created unique and innovative strategies that have resulted in accelerated business development and job creation. Classic examples include Logan’s #1 ranking as a best performing small city versus last year’s #19 ranking. Clearly, all Utah’s cities are pulling together in the same direction.” Note: The full Milken report can be view on their website at <www.milkeninstitute.org> |