October 25, 2011

2012 Retirement Plan Contribution Limits

Related Service Tax & Business

2012 Retirement Plan Contribution Limits Tax & Business

Last week, the IRS announced the 2012 cost of living adjustments for most retirement plans. Most limits have changed for 2012 and are reflected in the chart below. Contributing to a retirement plan is an excellent way for individuals to invest for retirement. The maximum dollar amounts which can be contributed through various types of retirement plans are as follows:

Plan Types 2012 Limits2011 Limits
Defined contribution plans$50,000$49,000
Defined benefit plans$200,000$195,000
Deferred contribution plans – 401(k), 403(b) and 457 plans:  
Under age 50$17,000$16,500
Age 50 and older$22,500$22,000
Simple plans:  
Under age 50$11,500$11,500
Age 50 and older$14,000$14,000
IRA, traditional and Roth:  
Under age 50$5,000$5,000
Age 50 and older$6,000$6,000
Other Thresholds2012 Limits2011 Limits
Annual compensation limit$250,000$245,000
Key employee in a top-heavy plan$165,000$160,000
Highly compensated employee$115,000$110,000

Please call your dedicated Marcum professional to address your particular retirement planning needs and for a complete update on the retirement plan limit changes.