I recently received a copy of, 65 Things to Do When You Retire, 65 Notable Achievers on How to Make the Most of the Rest of Your Life to review. I’m not really the target audience for this book but it does seem like it would be a great book for those who are about to retire.

A collection of 65 essays that provides practical and entertaining advice about how to create a fulfilling retirement. The contributors will include recognizable names as well as others in their sixties who have created dynamic lives post-retirement. Other contributors include respected retirement experts. Modeled on the publisher’s successful birthday series, the royalties from the sale of this book will be donated to cancer research.

Thanks to the generosity of the contributing authors, all of whom provided essays on a pro bono basis, the royalties generated from the sale of this book will be donated to nonprofit organizations dedicated to preventing and curing cancer.

If you’re interested in finding out more about the book you can go to Amazon.com or the publisher’s website.

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I was privileged to host the Carnival of Retirement this week. I also participated in the following carnivals.

Yakezie Carnival at 101 Centavos
Carnival of Financial Camaraderie at My University Money
Totally Money at Faith Money Values
Carnival of Financial Planning at 20′s Finances
Carnival of Retirement at My Retirement Blog

You’re looking for somewhere warm to retire — but you don’t have much money. Instead of Florida or Mexico, consider another spot, instead — Panama.

We spent two weeks driving around this lovely country last year, staying at hotels, B&Bs, and even a beachside resort. What we discovered surprised us: both good and bad.

Panama, officially known as The Republic of Panama (“Pa-na-MAH”), is the southernmost country in Central America. Back in the 19th century, it was better known as a swampland of yellow fever, until William Gorgas, with the help of Carlos Finlay and Walter Reed, discovered its cause: mosquitoes. Their treatment helped workers survive the construction of the Panama Canal, from 1904-1914. This architectural wonder returned to Panamanian control in 1999, after the U.S. controlled it for many decades.

The Canal really is wonderful, especially when the ships pass through on a rainy day, wreathed over by fog and blowing their horns a little mournfully. And if you view it from the visitor center at the Miraflores Locks, you’ll be able to not only see the current locks, which are huge — but the newest set of locks under construction — which are gigantic. (Take the top floor observation deck, and plan on a meal stop at the restaurant, if you want a more relaxed view.)

The worst part about visiting the Canal — and the rest of Panama, incidentally — is that inevitably you must travel through Panama City. This jam-packed metropolis is big, dirty and lively. Slums mix with skyscrapers, flashy signs and the worst drivers on the face of the earth. With care and a whole lot of nail-biting, you’ll survive…but it won’t be fun.

Maybe you should take the bus, instead. Either that or a rental car, and only a few days of steady travel will take you the length of the country. (Watch out for the street cops in Divisa — they can and will try to stop you and claim you were making a U-turn, if you were turning left. That means big ticket penalties in this quirky country!)

Once you’re away from the noise and hurry of Panama City, you’ll find a whole lot of rural farmland, with plenty of cattle. Take note of the posts in the fences along these ranches — they’ve often grown into trees!

That’s how fertile this country is. Sure, it’s tropical, but it has a minimum of humidity, compared to other Latin American countries; and a reasonable amount of rain. (The mountain chain that forms the backbone of Panama, especially the coffee area of Boquete, enjoys more of this liquid sunshine, along with cooler temperatures.)

Stay in the valley, and you can drive the length of Panama, along with occasional busses and regular semis. (Make sure you, like everyone else on the road, swerve occasionally to dodge the potholes, which could swallow up small animals. Thanks to no train system, Panama relies on 18-wheelers and other trucks to keep things moving.)

Just an hour’s drive uphill, and you’re in the mountains. Turn the other direction off the main Pan-American Highway, and within an hour, you’ll be sitting on the beach and watching the fishermen. That’s how varied the climates are.

The people are friendly (well, except for the police in Divisa), and the seafood is downright wonderful. Stick with the fresh fish and shrimp, especially if it’s grilled…you can’t go wrong. But don’t expect a ‘tortilla’ when it’s offered: you’ll get a coarse-ground cornmeal cake that resembles polenta or grits. We were told English was spoken throughout the country, but that wasn’t true. We relied a lot on our misshapen Spanish, plus pointing and smiling.

Should you retire to Panama? Not if you enjoy the fast life, or want your world to be ‘American.’ (One possible exception would be living in Boquete, which has many ex-pats.)

But there are many positives to be considered, if you enjoy a slowed-down, rural life. Land prices are low, and it’s possible to grow many of your own vegetables and fruits. Practically everyone has a cellphone, and it’s surprisingly easy to get internet access. The coffee is wonderful, too…

Panama prides itself on being one of the most price-friendly countries for American retirees. The country’s Special Tourism Zones offer exemptions from income and real estate taxes, and retirees can take advantage of everything from discounts on restaurants to lenient rules on leaving and entering the country.

Several websites can give you a better idea of what it’s like to live in Panama, including this one. Beware, though: many want to sell you jazzed-up real estate for big bucks. You’re better off consulting a Panamanian realtor who speaks English, and has worked with Americans before. (There are many.) And definitely plan to spend at least a week or two in the country before you make any big decisions. You might just find yourself falling in love with this peaceful, relaxing place.

This post is by Staff Writer Cindy Brick. You can read more of her writing at CindyBrick.com or her personal blog.

photo credit: Dominic Scaglioni

Welcome to the most recent Edition of the Carnival of Retirement. If you want to submit a post for next week’s edition, please use the submission form. Next week’s edition will be hosted by My Personal Finance Journey.

Dr. Dean from The Millionaire Nurse published A Valentine’s Day: Make A Choice, saying, ‘Just like Christmas, it’s easy to let commercialization and materialism ruin a beautiful idea. Don’t stress your relationship over this over-hyped holiday. Now-go make love not war!’

Darwin from Darwin’s Money published Your President Is Lying About a ‘Strong Dollar Policy’ – Why Dollar Weakness Matters, saying, ‘I couldn’t help but notice today that Pfizer started the trend we’ll see from every multinational today blaming lower 2012 forecasts on a stronger dollar CNBC.’

Luke Bonds from Learn Bonds published Treasury Bonds, saying, ‘All three are types of bond issued by the federal government of the United States. The name indicates the maturity date of the bond.’

LaTisha from Financial Success for Young Adults published The Five Components of a Credit Score, saying, ‘How can I improve my credit score? There are five components to credit card scoring and if you want to improve your FICO score pay attention.’

Andy from My Retirement Blog published How Much Do I Really Need to Retire?, saying, ‘Retirement. Spending time with your family. Travel. Doing what you want to do, when you want to do it. It’s a wonderful pipe dream that practically anyone over 50 indulges in now and then. Or even younger. But in addition to all the uncertainty about Social Security, there’s more to consider, including rising Medicare costs.’

Kyle from The Penny Hoarder published The #1 Most Overlooked Tax Deduction Could Save You $1,000, saying, ‘There’s free money available to people who invest in retirement accounts, but the money is often overlooked. Many low-income individuals could qualify for the Saver’s Credit. It’s a tax deduction that could put up to $1,000 in their wallets.’

YFS from Your Finances Simplified published Stock Primer for the Novice Investor, saying, ‘When it comes to investing money, the very first thing that comes to mind is putting it aside as savings. What people fail to realize is that this is not a productive way to invest their money. Read my primer and learn the way!’

Shaun from Smart Family Finance published How We Taught Our Daughter about Saving: Top Family Finance Posts #4, saying, ‘Teaching your daughter how to save is a challenging task. This is how my family taught my daughter at the age of three.’

Daniel from Sweating the Big Stuff published With The Federal Reserve Holding Steady On Interest Rates, Is Now The Time To Buy?, saying, ‘Last week, the Federal Reserve say they have no plans to raise interest rates until 2014. But what does that mean for mortgage rates?’

Corey from 20s Finances published Furnishing Your Apartment from Ikea?, saying, ‘If you are looking to furnish your first apartment, you may be wondering where the best place to buy your major items from. There are many great stores to choose from these days and it is hard to establish the best place. While I often suggest that Craigslist is the best place to buy items because it ensures that you are not paying the mark-up price for a new item.’

KT from Personal Finance Journey published 3 Tried and True Ways to Find Money to Snowflake on Debt, saying, ‘Are you in debt? If so, you are in company with millions of Americans. However, 2012 can be the year that you resolve to be debt free or to significantly reduce your debt. My preferred method of paying down debt is two pronged, use the debt snowball and read my other methods on my site!’

Dividend Ninja from The Dividend Ninja published Why Should I Invest in Bonds? Part-1, saying, ‘These days, bonds are getting a bad name. Stock markets are off to a tremendous start in 2012, dividend stocks are outperforming, and not surprisingly investors are losing their confidence in government issued bonds. There are three main reasons why investors are spooked with bonds…’

Hank from Money Q&A published What’s The Difference Between Index Funds and Exchange Traded Funds ETFs, saying, ‘At first glance, many investors simply do not understand the difference between index funds and exchange traded funds and how they can fit into your investments.’

Don from MoneySmartGuides published Your 401k: How Much Are You Paying?, saying, ‘I’m not a huge fan of writing about taxes. Most readers aren’t big fans of reading about taxes. I can’t lie, so unfortunately this post is about taxes. Please don’t go. I promise this is very important information and it help you!’

Amanda L Grossman from Frugal Confessions published The Zero Sum Financial Game: Ideas to Help You Juggle the Month, saying, ‘At the end of the month you need for all bills to be paid, savings goals to be met, and for your checking account to have a balance of at least zero!’

krantcents from KrantCents published The 3 C’s of Success, saying, ‘The 3 C’s of Success is the third in a series of articles to help you reach your goal. What are your goals? I know you thought about it! You know, it is your dream, wish or resolution you made! Before you can get to where you want to be, you need to know where you have been!’

MMD from MyMoneyDesign published A Strategy for Maxing Out Your Retirement Savings, saying, ‘Learn about the strategy we used to max out our retirement plans like our 401k and IRA’s, and how we plan to keep saving above and beyond that!’

“Evan from My Journey to Millions published Updating My Dividend Income Investment Portfolio, saying, “I will continue my $300 – $500 lots at or near short term dips in the stock. I spent a lot of time on this portfolio, but I am not providing investment advice rather I want to hear what EVERYONE thinks about it!”

Jeremy Waller from Personal Finance Whiz published Is Health Insurance Worth It?, saying, ‘Health insurance is one of the most important types of insurance you can have. Heath care costs in the U.S. are ridiculous! Even a simple inpatient procedure can cost you in excess of $10,000. If you don’t have insurance one trip to the hospital could put you under serious financial strain!’

Erika from Newlyweds on a Budget published Traveling vs. Saving, saying, ‘Is it okay to travel when you’re paying down debt and saving money?’

Aloysa from My Broken Coin published Spending That I Can Afford, saying, ‘January was not an easy month. I felt unhinged. I felt content. I was a bitch. I was a good friend. I was rude. I was sweet. I expected a lot. I expected very little. I was happy. I was blue. I was sick. I was all over the place. All shopping bills are paid.’

A Blinkin from Funancials published Market Update: Snowboarding on the Stock Market, saying, ‘When Burton first introduced snowboards back in the 80′s, they were for lack of a better term, runaway death machines. They did not have metaledges and were very hard to control, especially in less than ideal conditions.Read how I tie this into the stock market!’

Suba from Broke Professionals published The Most Painful Annuity, saying, ‘Alimony, which is taken from the Latin derivation for sustenance, is a court declared contract where a man or women is obligated to receive monetary compensation from their spouse, after their divorce or separation. While the term and concept has been changed since modern times, its origins can be traced way back to ancient history The Most Painful Annuity!’

Eddie from Finance Fox published Get Your Free Credit Report – Honestly, it’s FREE!, saying, ‘Small business web hosting offering additional business services such as: domain name registrations, email accounts, web services, FrontPage help, online community resources and various small business solutions.’

Wayne from Young Family Finance published Financial Benefits of Not Having Kids, saying, ‘Discover some of the financial benefits of not having kids. It may surprise you to know the true costs and what you are saving by not having kids.’

Small Business Resource from Small Business Resource published How to Save Money on Technology For Your Business, saying, ‘Fax machines, copiers, printers, computers, smartphones, tablets … it seems like every day there is some new piece of technology without which your business’

FG from Financial God published The Role of Money in the Financial Crisis, saying, ‘There is an interesting post by Jeffrey Tucker on the Mises Institute of Canada about the ongoing ‘crisis of capitalism’. If one is talking about the current world economic order, then there is indeed a crisis going on, but it all depends on how you define the word ‘capitalism’. ”

Mich from Beating The Index published Stock Updates: Aroway Energy, Hyperion Exploration, Palliser Oil and Gas, saying, ‘Aroway Energy : This stock, the one that got away, has performed superbly in the past months particularly in a difficult year such as 2011 where it outperformed’

Jeffrey from Money Spruce published Is a Master’s Degree Worth It?, saying, ‘Advanced degrees aren’t all they’re cracked up to be. They won’t guarantee you your dream job. They won’t ensure happiness in life, either. But they will cost you a lot of money if you’re not careful. At age 26, I’ve already completed my Bachelor’s and Master’s degree. That’s not me bragging by any means.’

Jester from The Ultimate Juggle published How to Get a Raise, saying, ‘Find out how to get a raise. By applying these tactics, you will be on your way to getting a raise.’

MR from Money Reasons published Are You A Money Hoarder?, saying, ‘Are You A Money Hoarder? Have you ever thought about it? Do you hide a lot of money in your house?’

PITR from Passive Income To Retire published Types of Investments, saying, ‘Read about different types of investments that are not the typical types of investments.’

Kevin from Thousandaire published 8 Financial Behaviors that Piss Me Off!, saying, ‘You know you hate it when people dig for exact change when they are in line in front of you. Here are all my least favorite financial behaviors.’

101 Centavos from 101 Centavos published Funny Girls and Stand-up Dames – Weekend Reading List, saying, ‘I can honestly say that I was never affected by the question of the success of an undertaking. If I felt it was the right thing to do, I would do it.’

Corey from Steadfast Finances published The Best Online Credit Tools, saying, ‘Your credit report can say a lot about you to a future creditor, landlord or even employer. There are many online tools that allow you to monitor and fix your credit.’

John from Married with Debt published Job Loss Protection: An Emergency Plan, saying, ‘If you are facing job loss or want to plan for job loss, it is a smart idea to have a Job Loss Emergency Plan. Read on for ways to protect your family and prepare for the worst.’

Peter from Bible Money Matters published The 401k Maximum Contribution Went Up This Year. Did You Bump Up Your Contributions?, saying, ‘This past year after we finally maxed out that 12 month emergency fund we finally started contributing close to the maximum to my 401(k) account through my job. This year as we make further changes we’ll be contributing right up to the maximum for 401(k) accounts, and we may also being contributing to the Roth IRA as well.’

Kacie from Sense to Save published How much money will you need to retire?, saying, ‘This post helps you consider your expenses in retirement, factor in inflation, and add in pensions and Social Security to determine how much you’ll need in your nest egg at the start of retirement.’

Cash Flow Mantra from Cash Flow Mantra published Three Pronged Approach to Retirement, saying, ‘As promised on Friday, I am going to delve into my retirement plans and share what I intend. Knowing what I know about inflation and purchasing power, I think you will find that this is a well rounded approach to the risks that will be present should I decide to live for 25 or 30 years following the day I quit my day job. It is not a really sophisticated plan per se with lots of fancy calculations, but is aimed at providing a living income for my wife and I with some extra money for travel purposes as well.’

Grand Per Month from Grand Per Month published How to Make $1,000 Per Month with Stock Dividends, saying, ‘The one downside to earning dividend income is that it takes a substantial amount of money to invest. Rather than spending a lot of time working to develop and establish the income, it takes cash. So if you have the cash to do this, great. If not, there are plenty of other ideas on the site which can help you make an extra $1000 per month which would eventually give you the cash needed to move to a more passive form of generating monthly income.’

Beating Broke from Beating Broke published The Lending Club IRA: Peer to Peer Lending Enters the Retirement Realm, saying, ‘Many of us struggle to put money away for our retirements. Do we really want what little money we have put away in an investment that carries as much risk as Lending Club notes carry? I like risky investments, but even I don’t think I’d want all of my retirement money in these notes.’

Jacob @ My Personal Finance Journey from My Personal Finance Journey published Options Investing – Does it Deserve a Place in Your Personal Portfolio?, saying, ‘This post gives an introduction to Options Investing, and describes how it may or may not fit into an individuals’ own investing strategy for the short term or for retirement.’

Miss T. from Prairie Eco Thrifter published How Anyone Can Create Passive Income, saying, ‘Typically, passive income is portrayed as a device for the rich to get richer. Those that have the money invest in passive investments such as rental units, property, big businesses, or large amounts of stocks that yield dividends. Each one of these investments can provide an excellent income with very little amounts of work, but they also need a large amount of up-front cash! So, how in the world do average Joes begin to earn a passive income?’

Crystal from Budgeting in the Fun Stuff published Our Stock Portfolio – 2012 Update, saying, ‘I realized a couple of weeks ago that I hadn’t updated any of you about our stock portfolio holdings for about a year. I still dislike stocks and market stats since they seem foreign to me, so Mr. BFS does most of our investing. Here are the current stocks we are investing in, their current dividend yield, and what Mr. BFS said about them:’

Jen from Master the Art of Saving published Sometimes It’s Good to Feel the Pain…of debt, saying, ‘We didn’t feel the pain of paying off our debt because we took the easy way out. The problem wasn’t just the debt; it was the lack of budgeting and being really stupid with our money. We made it a whole two weeks without using credit cards to pay for stuff we couldn’t afford. After that, we went right back to everything we were doing before.’

Jon the Saver from Free Money Wisdom published Why You Need a Retirement Plan and How to Create a Sturdy One, saying, ‘Even though it is common knowledge that starting to save for retirement as early as possible is the best practice, some still ask, “Do I really need a retirement savings plan at all?” One reason the answer to that question is an emphatic “YES” is that you never know what the future will bring and unexpected and sudden circumstances may arise.’

Jeffrey from Saving Advice published Top 5 Dying Regrets: Why I Won’t Have Them and Neither Should You, saying, ‘A nurse, Bronnie Ware, who spent years tending to patients that were living the last weeks of their lives recently came out with a book titled The Top Five Regrets of the Dying: A Life Transformed by the Dearly Departing. While not all of these regrets are directly related to finances, they do all have some type of money aspect to them. These are the five most common regrets for people at the end of their life and why I won’t have them (and neither should you) when I do die:’

retirebyforty from Retire By 40 published Dividend Income Portfolio Jan. 2012 Update +RDS.B, saying, ‘A dividend portfolio is a great tool for retirement income. My latest addition is RDS.B because gas price will sky rocket this summer and I’m sure Shell will benefit.’

“Emmie from Frugalist published Saving for Retirement: 7 Super Strategies, saying, ‘Achieving a comfortable retirement requires a good plan. Starting to save sooner rather than later and tracking your goals along the way is the main key to a successful retirement plan.’

SB from One Cent at a Time published How much do I need to save for retirement every month, saying, ‘Are you over-saving or under-saving for your retirement? You can’t know before you do some calculation. Determine if your retirement saving is taking pre-retirement pleasures away. Its important to calculate exactly how much you need to save every month to reach your retirement target.’

My Retirement Blog participated in the following carnivals recently.

Yakezie Carnival at Steadfast Finances
Carnival of Financial Camaraderie at Newlyweds on a Budget
Totally Money at 20′s Finances
Canadian Finance Carnival at Canadian Finance Blog
Carnival of Financial Planning at Skilled Investor Blog
Carnival of Retirement at Financial Success for Young Adults

Many Americans are planning for retirement earlier than ever. While the reality is that tough economic conditions may force them to retire years later than they wanted, this is having the dual affect of encouraging more foresight and planning. With an increasing number of families struggling to afford college tuitions, student loan payments, mortgages, and general costs of living, it’s never been more important to look into retirement options. Nearly all financial institutions, including the Aurora Bank, provide detailed explanations of the following plans and options, but here’s a brief breakdown of the most reliable retirement savings strategies:

Check out your employer’s pension plan. Many companies offer their employees deferred payments at the time of their retirement. These are employment based pensions, also known as retirement plans. Other pensions include social and state pensions and disability pensions. Pensions can come in the forms of IRAs and 401(k)s—see below for more.

Pay into an employer-run retirement savings plan. A 401(k) plan, for instance, allows employees to reduce taxable income while creating a nest egg for later in life.

Pay into an IRA account. There are two options here: the regular IRA and the Roth IRA. They both grow without being taxed. The difference between them involves taxation upon withdrawal. With the regular IRA you pay taxes on the money on the back end, when you withdraw the money. With a Roth IRA your savings are taxed before being put into the account, but can be withdrawn tax-free. The other main difference is that there are income limits on the Roth, meaning you have to earn a certain amount. The Roth tends to be more flexible as far as withdrawing early.

Don’t take money out of your retirement savings. Taking money out of your retirement account before you retire will make you lose principal and interest. There may also be additional taxes and penalties. You best bet is to transfer that money into an IRA account.

Educate yourself about social security benefits. Social security usually gives you about 40 percent of your pre-retirement income and is widely viewed as one of the best security nets for retirees.

Invest safely in defensive industries. If you absolutely feel you must invest in stocks, pick defensive industries, or non-cyclical ones like alcohol, condoms and other recession-proof staples. These make for better long term investments than ones in volatile industries.

The economic slowdown has forced many retirees to rethink their situations. And it has forced many pre-retirement workers to take extra precautions and change their investment strategies. For any adult planning to retire someday, it’s worth taking the time to look into your options and make a game plan for how to best save for the future.

I’m spending today watching the Super Bowl rather than blogging but I do want to give a quick thanks to the following blogs for including my posts in their Carnivals.

Yakezie Carnival at The Amateur Financier
Canadian Finance Carnival at Canadian Finance Blog
Carnival of Financial Planning at The Amateur Finacier

Retirement. Spending time with your family. Travel. Doing what you want to do, when you want to do it.

It’s a wonderful pipe dream that practically anyone over 50 indulges in now and then. (Or even younger.) But in addition to all the uncertainty about Social Security, there’s more to consider, including rising Medicare costs, housing, assisted living and so on. Eventually the question rises:

How much do I really need to save, in order to retire?

And the flip side to that: What if I haven’t managed to do it?

One of the most negatively inspiring books on the subject is Lee Eisenberg’s The Number. (Subtitle: “We’re All Screwed.”) According to Eisenberg, people who invested watched their money swirl down the 2006-2008 stock market crash toilet; those who spent it, instead, just went broke that much faster. To make things worse, people who “downshifted” didn’t always consider that they would not only be living longer, they’d be doing it with uncertain medical plans, and more needs for regular care.

Through the gloom, though, a few lessons emerge:

*You don’t always need a bazillion dollars to retire, no matter what the formulas say. (You might lose it, anyways, the way today’s economy is going.)

*Saving regularly may not protect you — but it does help during emergencies. And the needed money will be there if you run into a sudden, can’t-be-missed opportunity.

*Interest may not be high right now — but neither is inflation. (Or so Eisenberg says. Seeing the jump in food prices over the past year or so, I’d disagree.)

*Plan on working longer. A part-time or consulting job will fill in gaps nicely. (Just don’t rely on it to be there forever — your health or other circumstances may not allow it.)

*Live frugally. It will help your money stretch that much further.

*Keep yourself open to opportunities. (As Katie Couric points out, “Sometimes hard work and good timing intersect. Sometimes they don’t. But they likely will at some point, and when they do…you’ll be ready.” (The Best Advice I Ever Got.)

So is there any formula for knowing how much money you’ll need in retirement? According to Eisenberg, it’s 4% yearly of the principal amount in your investments– based on a 1994 calculation by Bill Bengen, a financial planner who spent hundreds of hours analyzing a hypothetical “sample portfolio’s real return based on historical performance.” (This figure does not include Social Security, pensions, part-time jobs or other income sources.)

Even just before the stock market debacle, financial advisors used to recommend 7, 8, even 9 or 10 percent…which many retirees “spent accordingly. But — oops! — the financial advisers and magazine had overlooked the you-would-think-it-was-obvious fact that stock market returns through that era were unusually robust.”

The final lesson is clear: the Number is just that…a number. “Either way,” Eisenberg says, “getting incensed over who has what strikes me as a waste of psychic energy and a waste of time. Better to invest this valuable energy, and use that time, to come to terms with who you are, or, if it better pleases you, to make more money.” Better get started right away.

This post is by Staff Writer Cindy Brick. You can read more of her writing at CindyBrick.com or her personal blog.

The Internal Revenue Service announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for Tax Year 2012. In general, many of the pension plan limitations will change for 2012 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment. However, other limitations will remain unchanged. Highlights include:

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.

My Retirement Blog was featured in the following carnivals during the past week.

Yakezie Carnival at Little House in the Valley
Carnival of Financial Camaraderie at Financial Success for Young Adults
Totally Money at Passive Income to Retire
Festival of Frugality at Squirrelers
Carnival of Financial Planning at Credit Cards Canada
Carnival of Retirement at 20′s Finances

2012 Combined Traditional and Roth IRA Contribution Limits

If you are under 50 years of age at the end of 2012: The maximum contribution that you can make to a traditional or Roth IRA is the smaller of $5,000 or the amount of your taxable compensation for 2012. This limit can be split between a traditional and a Roth IRA but the combined limit is $5,000. The maximum contribution to a Roth IRA and the maximum deductible contribution to a traditional IRA may be reduced depending upon your modified adjusted gross income (modified AGI).

If you are 50 years of age or older before the end of 2012: The maximum contribution that can be made to a traditional or Roth IRA is the smaller of $6,000 or the amount of your taxable compensation for 2012. This limit can be split between a traditional and a Roth IRA but the combined limit is $6,000. The maximum contribution to a Roth IRA and the maximum deductible contribution to a traditional IRA may be reduced depending upon your modified AGI. This information is from IRS.gov which has lots of good information about retirement accounts.

I had articles in the following carnivals in the past week.

Yakezie Carnival at Prairie Eco Thrifter
Carnival of Financial Camaraderie at My University Money
Totally Money at Family Money Values
Festival of Frugality at The Frugal Toad
Carnival of Financial Planning at Skilled Investor Blog
Carnival of Retirement at Retire By 40