News
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.
An independently owned and operated member firm of Nexia International
Terms of Use Privacy Policy Contact
© 2012 KSM Business Services, Inc.
website content management powered by Marketpath CMS