Retirement Plan Limits Increase in 2012
The IRS has announced the cost-of-living adjustments applicable to dollar limits on benefits and contributions under qualified retirement plans for tax year 2012.
Retirement plan limits will change as follows:
The limitation on the amount of employee voluntary ORP and 403(b) plan contributions increases to $17,000 (from $16,500).
The limit on combined employee and employer contributions to the Pension, Investment and ORP plans increases to $50,000 (from $49,000). The mandatory 3 percent employee contribution is included in this limit.
The annual compensation limit for contributions to retirement plans increases to $250,000 (from $245,000).
The limitation for 457 plan elective deferrals to the State of Florida Deferred Compensation plan increases to $17,000 (from $16,500).
The limitation for catch-up contributions to the Investment, ORP, 403(b), and 457(b) plans for individuals age 50 or over is unchanged at $5,500.