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 |
$17,000 |
$16,500 |
$16,500 |
$16,500 |
$15,500 |
|
§§ 401(k), 403(b) and 457 |
$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 |
$2,500 |
$2,500 |
$2,500 |
$2,500 |
$2,500 |
|
§ 415 Limit for
|
$50,000 |
$49,000 |
$49,000 |
$49,000 |
$46,000 |
|
Highly Compensated Employees |
$115,000 |
$110,000 |
$110,000 |
$110,000 |
$105,000 |
|
Includible Compensation |
$250,000 |
$245,000 |
$245,000 |
$245,000 |
$230,000 |
|
Key Employees (§ 416)
|
$165,000 |
$160,000 |
$160,000 |
$160,000 |
$150,000 |
|
Compensation Threshold for SEP |
$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.
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