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 |