The Internal Revenue Service recently announced the annual Cost-of-Living Adjustments (COLA) for retirement plans and related limitations for the 2012 tax year. Several of the following limits have changed for 2012 compared to the 2011 limits.
2012 | 2011 | |
Social Security Taxable Wage Base | $110,100 | $106,800 |
Medicare Taxable Wage Base | No Limit | No Limit |
Compensation (Plan Limit) | $250,000 | $245,000 |
Compensation (SEP) | $550 | $550 |
Defined Benefit Limit (415) | $200,000 | $195,000 |
Defined Contribution Limit (415) | $50,000 | $49,000 |
401(k) and 403(b) Contribution Limit | $17,000 | $16,500 |
401(k) and 403(b) Catch Up Contribution Limit (over age 50) | $5,500 | $5,500 |
SIMPLE Contribution Limit | $11,500 | $11,500 |
SIMPLE Catch up Contribution Limit (over age 50) | $2,500 | $2,500 |
Highly Compensated Employee Definition (prior year) | $115,000 | $110,000 |
Maximum Deduction (% of Compensation) P/S and SEP Plans | 25% | 25% |
IRA Contribution Limit (Traditional & Roth) | $5,000 | $5,000 |
IRA Catch Up Contribution Limit (Over Age 50) | $1,000 | $1,000 |
For questions regarding your retirement plan, please contact any of the members of our Employee Benefit Plan Services Group.
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