The Internal Revenue Service has announced cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items for 2012. In general, many of the pension plan limitations will change for 2012 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment. However, other limitations will remain unchanged. For more information about retirement plan limits, feel free to contact me or visit www.irs.gov/retirement.
| 401(k), 403(b), 457 Elective Deferral Limit |
$17,000 |
$16,500 |
| Catch-Up Contribution Limit |
$5,500 |
$5,500 |
| Annual Compensation Limit |
$250,000 |
$245,000 |
| Defined Contribution Limit |
$50,000 |
$49,000 |
| Defined Benefit Limit |
$200,000 |
$195,000 |
| Key Employee |
$165,000 |
$160,000 |
| Definition of Highly Compensated Employee |
$115,000 |
$110,000 |