IRS Announces 2012 Retirement Plan Contribution Limits
October 20, 2011
On October 20, 2011, the IRS announced the various adjustments applicable to retirement plan contribution limits for 2012. Many of the limitations will change for 2012 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment.
The tables below show the 2011 and 2012 contribution limitations for 457 plans, 401 plans and IRAs.
More details on the retirement plan limits are available from the IRS.
457 Plan Limits| Limitation | 2012 | 2011 |
|---|---|---|
| Annual Deferral Limit for 457 Plans | $17,000 | $16,500 |
| “Pre-Retirement” Catch-Up Limit | $17,000 ($34,000 total) | $16,500 ($33,000 total) |
| “Age 50” Catch-Up Limit | $5,500 ($22,500 total) | $5,500 ($22,000 total) |
| Limitation | 2012 | 2011 |
|---|---|---|
| 401 Defined Contribution Plans - Annual Additions (§415(c)(1)(A)) | $50,000 | $49,000 |
| 401 Defined Benefit Plans - Maximum Annual Benefit* (§415(b)(1)(A)) | $200,000 | $195,000 |
| 401 Annual Compensation Limit** (non-grandfather/grandfather) (§401(a)(17))) | $250,000/ $375,000 | $245,000/ $360,000 |
| Annual Deferral Limit for (§401(k) Plans (§402(g)) | $17,000 | $16,500 |
| 401(k) "Age 50" Catch-Up (§414(v)) | $5,500 ($22,500 total) | $5,500 ($22,000 total) |
| Limitation | 2012 | 2011 |
|---|---|---|
| Annual Contribution Limit | $5,000 | $5,000 |
| “Age 50” Catch-Up Limit | $1,000 | $1,000 |
*Special limitations apply to defined benefit plans. Please contact your defined benefit plan administrator for additional information.
**OBRA 1993 provided a governmental exception for the maximum compensation limit that grandfathers certain employees under the 1993 compensation limit of $235,840. Employees eligible to participate in a governmental plan, utilizing the ICMA-RC plan document, prior to January 1, 1994, are subject to the maximum compensation limit of $235,840 as indexed and shown above as the "grandfather" limit. Employees eligible to participate in a governmental plan, utilizing the ICMA-RC plan document, after January 1, 1994, are subject to the maximum compensation limit of $150,000 as indexed and shown above as the "non-grandfather" limit.