10.21.2011

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Updates

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. 

Plan Limits 

 2012

 2011

 2010

2009 

 2008

 § 401(k) Plan, § 403(b) Plan, and
 § 457 Governmental Plan

$17,000

$16,500

$16,500

$16,500

$15,500

 §§ 401(k), 403(b) and 457
 Catch-Up Contributions

$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
 Catch-Up Contributions

$2,500

$2,500

$2,500

$2,500

$2,500

 § 415 Limit for
 • Defined Contribution Plan
   (§ 415(c))
 • Defined Benefit Plan (§ 415(b))

$50,000
$200,000

$49,000
$195,000

$49,000
$195,000

$49,000
$195,000

$46,000
$185,000

 Highly Compensated Employees
 (§ 414(q))

$115,000

$110,000 

$110,000

$110,000

$105,000

 Includible Compensation
 (§ 401(a)(17))

$250,000

$245,000

$245,000

$245,000

$230,000

 Key Employees (§ 416)
  • Officer Group

$165,000

$160,000

$160,000

$160,000

$150,000

 Compensation Threshold for SEP
 Eligibility (§ 408(k)(2)(C))

$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

 

 © 2011 Perkins Coie LLP