IRS Announces 2012 Plan Contribution and Benefit Limits

Man relaxing and having a look at the skyOn October 20, 2011, the Internal Revenue Service announced cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2012. See the chart below for further details.

20122011
RETIREMENT PLANS
Annual Compensation Limits - 401(a)(17)/404(l)250,000245,000
Elective Deferrals 401(k)/403(b) - 402(g)(1)17,00016,500
Catch-up Contributions - 414(v)(2)(B)(i)5,5005,500
457 Elective Deferrals - 457(e)(15)17,00016,500
Defined Contribution Limits - 415(c)(1)(A)50,00049,000
Annual Compensation Limit for eligible participants in certain governmental plans in effect as of July 1, 1993 - 401(a)(17)375,000360,000
OTHER
Highly Compensated Employee Threshold - 414(q)(1)(B)  Key115,000110,000
Defined Benefit Limits - 415(b)(1)(A)200,000195,000
Key Employee - 416(i)(1)(A)(i)165,000160,000
Social Security Taxable Wage Base110,100106,800
IRAs
IRA Contribution Limit - 219(b)(5)(A)5,0005,000
IRA Catch-Up Contributions - 219(b)(5)(B)1,0001,000
ROTH IRAs
Adjusted Gross Income (AGI) for determining maximum Roth IRA contribution – married filing jointly or qualifying widow(er)173,000169,000
AGI for determining maximum Roth IRA contribution – Other filing status110,000107,000
SEP
SEP Minimum Compensation - 408(k)(2)(C)550550
SEP Maximum Compensation - 408(k)(3)(C)250,000245,000
SIMPLE Plans
SIMPLE Maximum Contributions - 408(p)(2)(E)11,50011,500
SIMPLE Catch-up Contributions - 414(v)(2)(B)(ii)2,5002,500

 

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