2012 Qualified Retirement Plan COLA Changes

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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.


About the Author

Keiter CPAs is a certified public accounting firm serving the audittax, accounting and consulting needs of businesses and their owners located in Richmond and across Virginia. We focus on serving emerging growth businesses and companies in the financial servicesconstructionreal estatemanufacturingretail & distribution industries and nonprofits. We also provide business valuations and forensic accounting servicesfamily office services, and inbound international services.

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