The Internal Revenue Service just released cost-of-living adjustments applicable to dollar limitations for pension plans and other items for Tax Year 2012. The good news is many limits have increased.
Below is a list of the most common 2012 retirement plan limits:
401(k) Elective Deferral Limit
- Increased to $17,000
- Increased for individuals age 50 or older to $22,500
Defined Contribution Maximum Annual Addition Limit
- Increased to $50,000
- Increased for individuals age 50 or older to $55,500
Annual Compensation Limit
- Increased to $250,000
Here is a 2012 Plan Limits flyer for your reference. If you have any questions about the limits or how they affect your plan, please contact your account manager.