IRS Announces Limits for Retirement Plans for 2012

IRS Announces 2012 Limits for Retirement Plans

The IRS has announced a 2012 Cost of Living Adjustment (COLA) for retirement plans. Check the chart below for the most commonly used limits, as many have changed for the coming year.

Employee Deferral Limit for 401k/403b Plans $17,000
Defined Contribution Limit (Total for employee plus employer contributions) $50,000
Age 50+ Catch-up Contribution Limit for 401k/403b Plans $5,500 (same as 2011)
Annual Compensation Limit (for benefit calculations) $250,000
Employee Deferral Limit for SIMPLE Plans $11,500 (same as 2011)
Age 50+ Catch-up Contribution Limit for SIMPLE plans $2,500 (same as 2011)
Highly Compensated Employee (HCE) Definition $115,000
Social Security Taxable Wage Base $110,100

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