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IRS Announces Pension Plan Limitations for 2012

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Jaxine L. Wintjen, CP
Foster Swift Employment, Labor & Benefits E-News
October 24, 2011

The IRS has announced the cost-of-living adjustments applicable to pension plan limitations for 2012.  Many of the pension plan limitations will change for 2012 because the increase in the cost-of-living index has met the statutory thresholds that trigger the adjustment.  However, some limitations remain unchanged.  The chart below sets forth the applicable limitations.

Employee Plan COLA

2011 Limit

2012 Limit

401(k) and 403(b) Employee Contribution Limit 



"Catch-Up Contribution" Limit



Defined Contribution Maximum

$49,000 (plus "Catch-Up")

$50,000 (plus "Catch-Up")

Highly Compensated Employee

$110,000 (look back year compensation)

$115,000 (look back year compensation)

Annual Compensation Limit



457 Plan Contribution Limit



Social Security Wage Base



Please contact your Foster Swift employee benefits professional if you have any questions regarding these limits.