business Retirement Plan Limits Announced for 2012 October 21, 2011 Did you know there were new retirement plan limits for 2012? We have the information for you. On October 19, 2011, the IRS published the 2012 retirement plan limits. The increases were greater than in the previous two years, when inflation was lower. In fact, many of the limits will increase for the first time in 4 years. Most of the limits are adjusted based on cost-of-living increases. But with the economic slowdown over the last few years, the limits remained flat from 2009 through 2011. The new limits are as follows: Annual Salary: Increases from $245,000 to $250,000Social Security Wage Base: Increases from $106,800 to $110,100HCE Determination: Compensation increases from $110,000 to $115,000Key Employee: Officer compensation increases from $160,000 to $165,000 Elective Deferrals 401(k)/403(b)/457: Increases from $16,500 to $17,000 Simple IRA: No change from $11,500 Catch-Up Contributions 401(k)/403(b)/457: No change from $5,500 Simple IRA: No change from $2,500 Annual Additions Limit Defined Benefit Plan: Increases from $195,000 to $200,000 Defined Contribution Plan: Increases from $49,000 to $50,000 Please let us know if we can answer any questions about how these new limits may impact your plans for 2012.
