Resources

News

News Blog

IRS Announces Retirement Plan Limitations for 2012

Posted 12:00 AM by

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.

link