October 21, 2011
The IRS has announced the 2012 cost-of-living adjustments for various retirement plan dollar limits. The 2012 limits are as follows:
|
Limit |
2010 |
2011 |
2012 |
| Section 402(g) limit for 401(k) pre-tax contributions |
$16,500 |
$16,500 |
$17,000 |
| Section 414(v) catch-up contribution limit |
$5,500 |
$5,500 |
$5,500 |
| Section 401(a)(17) limit on annual compensation recognizable for retirement plan purposes |
$245,000 |
$245,000 |
$250,000 |
| Annual pre-tax contribution rate for participants at the compensation limit to reach the Section 402(g) contribution limit |
6.73% |
6.73% |
6.80% |
| Section 415 limit on annual additions to a defined contribution plan |
$49,000 |
$49,000 |
$50,000 |
| Section 415 limit on annual benefits under a defined benefit plan |
$195,000 |
$195,000 |
$200,000 |
| Compensation threshold for defining “Highly Compensated Employees” |
$110,000 |
$110,000 |
$110,0001 |
| Compensation threshold for officers to be “Key Employees”2 |
$160,000 |
$160,000 |
$165,000 |
| Social Security (OASDI) Wage Base |
$106,800 |
$106,800 |
$110,100 |
1 An employee with compensation exceeding $115,000 in 2012 will be an HCE in 2013.
2 5% owners and 1% owners with compensation exceeding $150,000 are also key employees.
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