The 401(k) Plan Blog

A forum to discuss all issues pertaining to qualified retirement plans; including 401(k), profit sharing, defined contribution, defined benefit and employee benefits. Included will be fiduciary responsibility and liability, ERISA Sections 3(21) and 3(38), Fee Disclosure, fiduciary delegation, discretionary trustees, participant education, plan governance, Defined Goal investing, mutual funds, collective funds (CIFs), ETFs, Asset Allocation Models, Target Date/Risk and glide paths.

Thursday, October 20, 2011

New Retirement Plan Limits for 2012 (COLA)

Not my usual kind of post, but this blog should be a source for all relevant Qualified Plan news and the IRS changing the Annual Limits for plans is pretty important information. Below is all of the changes, and there were some changes.

Internal Revenue Service cost-of-living adjustments applicable to dollar limitations for retirement plans.

401(k), 403(b) & 457 Elective Deferral Limit increases from $16,500 in 2011 to $17,000 in 2012

Catch-Up Contribution Amount stays unchanged at $5,500

415 Defined Contribution Annual Additions Limit increases from $49,000 to $50,000

Compensation Considered increases from $245,000 to $250,000

Income Subject to Social Security Tax (Taxable Wage Base) increases from $106,800 to $110,000

There are others that are important for use with Non-Discrimination and Top-Heavy tests, but the above are the relevant ones to Plan Sponsors and participants.