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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 audit, tax, 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 services, construction, real estate, manufacturing, retail & distribution industries and nonprofits. We also provide business valuations and forensic accounting services, family office services, and inbound international services.