IRS Contribution Limits for 2012
Today the IRS posted the 2012 retirement plan limits, and for the first time since 2009, they are increasing! The new limits are as follows:
- Elective Deferrals for 401k/403b/457: $17,000 (increased from $16,500 in 2011)
- Catch-Up Contributions for 401k/403b/457: Remains at $5,500
- Annual Compensation: $250,000 (increased from $245,000 in 2011)
- Annual Additions Limit for Defined Contribution Plans: $50,000 (increased from $49,000)
- Highly Compensated Employees: $115,000 (increased from $110,000)
- Key Employee: $165,000 (increased from $160,000)
- Social Security Wage Base: $110,000 (increased from $106,800)
For those that are seeking to max out their savings, this year provides you just a little more room. That’s good, as you cannot save too much for retirement.