2012 Qualified Plan Cost of Living Increases-Ruder Ware

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2012 Qualified Plan Cost of Living Increases, 2012 Social Security Taxable Wage Base

2011-10/21 Mary Ellen Schill

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The Internal Revenue Service has announced the cost-of-living adjustments for the various qualified retirement plan limits. Unlike 2011, almost all of the limits shown below are changed from last year.

Qualified Plan Limit	Cost-of-Living Adjustments
401(k) and 403(b) elective deferral limit	2011-$16,500 2012-$17,000
$200,000 compensation limit	2011-$245,000 2012-$250,000
$160,000 defined benefit limit	2011-$195,000 2012-$200,000
$40,000 defined contribution limit	2011-$49,000 2012-$50,000
$80,000 definition of highly compensated employee	2011-$110,000 2012-$115,000
SIMPLE IRA deferral limit	2011-$11,500 2012-$11,500
Code Section 457 deferred compensation plan deferral limit	2011-$16,500 2012-$17,000
Code Section 414(v) catch-up contribution limit for employee deferrals	2011-$5,500 2012-$5,500

All of the above are plan year limits (i.e., for the plan year which begins in 2012), with the exception of the Code Section 401(k) and Code Section 403(b) elective deferral limit, which is a calendar year limitation.

In addition, the Department of Health and Human Services has set the maximum taxable wages for the OASDI portion of the social security tax at $110,100 for 2012.

For further information, please contact Attorney Mary Ellen Schill, who prepared this article, or any of the attorneys within the Employment, Benefits & Labor Relations Group of Ruder Ware: Dean Dietrich, Ron Rutlin, Sara Ackermann, Bryan Symes, or Kevin Terry.

© 2011 Ruder Ware, L.L.S.C. Accurate reproduction with acknowledgment granted. All rights reserved.
This document provides information of a general nature regarding legislative or other legal developments. None of the information contained herein is intended as legal advice or opinion relative to specific matters, facts, situations, or issues, and additional facts and information or future developments may affect the subjects addressed.