The IRS announced the Year 2012 cost-of-living adjustments for various provisions affecting employee benefit plans. The following table shows certain Year 2012 limits and those from prior years. Many of the 2012 limits listed below increased from 2011 because the increase in cost-of-living index met the statutory thresholds that trigger their adjustment. View the IRS publication with a complete list of 2012.

Plan Limits

2012

2011

2010

2009

2008

§ 401(k) Plan, § 403(b) Plan, and
§ 457 Governmental Plan

$17,000

$16,500

$16,500

$16,500

$15,500

§§ 401(k), 403(b) and 457
Catch-Up Contributions

$5,500

$5,500

$5,500

$5,500

$5,000

SIMPLE Plan

$11,500

$11,500

$11,500

$11,500

$10,500

SIMPLE § 401(k) and IRA
Catch-Up Contributions

$2,500

$2,500

$2,500

$2,500

$2,500

§ 415 Limit for

  • Defined Contribution Plan
    (§ 415(c))
  • Defined Benefit Plan (§ 415(b))

$50,000
$200,000

$49,000
$195,000

$49,000
$195,000

$49,000
$195,000

$46,000
$185,000

Highly Compensated Employees
(§ 414(q))

$115,000

$110,000

$110,000

$110,000

$105,000

Includible Compensation
(§ 401(a)(17))

$250,000

$245,000

$245,000

$245,000

$230,000

Key Employees (§ 416)

  • Officer Group

$165,000

$160,000

$160,000

$160,000

$150,000

Compensation Threshold for SEP
Eligibility (§ 408(k)(2)(C))

$550

$550

$550

$550

$500

FICA Taxable Wage Base

          

Social Security (Tax Rate 6.20%)

$110,100

$106,800

$106,800

$106,800

$102,000

Medicare (Tax Rate 1.45%)

No limit

No limit

No limit

No limit

No limit

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.