IRS Announces 2012 Pension Plan Dollar Limits
Today, the Internal Revenue Service announced the cost of living adjustments applicable to dollar limitations for pension plans for the 2012 tax year. These dollar limitations affect, among other things, the maximum amount that an employee may be contribute on a pre-tax basis into a 401(k) and 403(b) plan (402(g)), the amount of compensation a plan can consider (401(a)(17)), and the compensation threshold that identifies highly compensated employees (414(q)(1)(B)). Below is a table showing both the limitations for the 2011 tax year and the limitations for the 2012 tax year.
|
Dollar Limitations |
2012 |
2011 |
|
401(k) & 403(b) Elective Deferrals (IRC § 402(g)(1)) |
$17,000 |
$16,500 |
|
Catch-Up Elective Deferrals (IRC § 414(v)(2)(B)(i)) |
$5,500 |
$5,500 |
|
Defined Benefit Plan Benefit (IRC § 415(b)(1)(A)) |
$200,000 |
$195,000 |
|
Defined Contribution Plan Contribution (IRC § 415(c)((1)(A)) |
$50,000 |
$49,000 |
|
Annual Compensation Limit (IRC § 401(a)(17) and IRC § 404(l)) |
$250,000 |
$245,000 |
|
457(b) Deferral (IRC § 457(e)(15)) |
$17,000 |
$16,500 |
|
Highly Compensated Employee (IRC § 414(q)(1)(B)) |
$115,000 |
$110,000 |
|
Key Employee in Top-Heavy Compensation (IRC § 416(i)(1)(A)(i)) |
$165,000 |
$160,000 |
|
SIMPLE Plan Deferral (IRC § 408(p)(2)(E)) |
$11,500 |
$11,500 |
|
SIMPLE Plan Catch-Up Elective Deferrals (IRC § 414(v)(2)(B)(iii)) |
$2,500 |
$2,500 |
|
SEP Coverage (IRC § 408(k)(2)(C)) |
$550 |
$550 |
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