On October 20, 2011 the Internal Revenue Service announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for 2012. In general, many of the pension plan limitations will change for 2012 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment. However, other limitations will remain unchanged. For more information about retirement plan limits, please contact your 401(k) Advisors plan consultant or email help@401kadvisors.com.
|
Plan Limits for Plan Year |
2012 |
2011 |
|
401(k), 403(b), 457 Elective Deferral Limit |
$17,000 |
$16,500 |
|
Catch-Up Contribution Limit |
$5,500 |
$5,500 |
|
Annual Compensation Limit |
$250,000 |
$245,000 |
|
Defined Contribution Limit |
$50,000 |
$49,000 |
|
Defined Benefit Limit |
$200,000 |
$195,000 |
|
Key Employee |
$165,000 |
$160,000 |
|
Definition of Highly Compensated Employee |
$115,000 |
$110,000 |
|
Social Security Wage Base |
$110,100 |
$106,800 |
