October 25, 2011
2012 Retirement Plan Contribution Limits
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 Limits | 2011 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 Thresholds | 2012 Limits | 2011 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.
