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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 |
$16,500 |
$17,000 |
|
"Catch-Up Contribution" Limit |
$5,500 |
$5,500 |
|
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 |
$245,000 |
$250,000 |
|
457 Plan Contribution Limit |
$16,500 |
$17,000 |
|
Social Security Wage Base |
$106,800 |
$110,100 |
Please contact your Foster Swift employee benefits professional if you have any questions regarding these limits.