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Cost of Living Adjustments for Defined Contribution Retirement Plans
On October 20, 2011, the IRS announced cost of living adjustments affecting Qualified Retirement Plans. Some of the limitations remain unchanged from 2011.
Source: KSPH, LLC
Effective January 1, 2012
2011 |
2012 |
||
Qualified Plan Compensation Limit |
$245,000 |
$250,000 |
|
401k/403b/457 Deferral Limit |
$16,500 |
$17,000 |
|
401k/403b/457 Catch Up Limit (50+) |
$5,500 |
$5,500 |
|
SIMPLE Plan Deferral Limit |
$11,500 |
$11,500 |
|
SIMPLE Plan Catch Up Limit (50+) |
$2,500 |
$2,500 |
|
Defined Contribution Plan Annual Limit |
$49,000 |
$50,000 |
|
Defined Benefit Plan Annual Limit |
$195,000 |
$200,000 |
|
Highly Compensated Group |
$110,000 |
$115,000 |
|
Social Security Wage Base |
$106,800 |
$110,100 |
|
SEP Eligibility Compensation |
$550 |
$550 |
|
Dollar Limit for Key Employee |
$160,000 |
$165,000 |
The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.