| The Internal Revenue Code provides for dollar limitations on benefits and contributions under qualified retirement plans. Code §415 requires the limits to be adjusted annually for cost-of-living increases. The IRS announced on October 20, 2011 cost-of-living adjustments applicable to dollar limitations for pension plans and other items for tax year 2012.
COLA Increases Table for prior years’.
Code
Section |
2012 |
2011 |
2010 |
| IRAs |
| IRA Contribution Limit – 219(b)(5)(A) |
5,000 |
5,000 |
5,000 |
| IRA Catch-Up Contributions – 219(b)(5)(B) |
1,000 |
1,000 |
1,000 |
| IRA AGI Deduction Phase-out Starting at |
| Joint Return |
92,000 |
90,000 |
89,000 |
| Single or Head of Household |
58,000 |
56,000 |
56,000 |
| SEP |
| SEP Minimum Compensation – 408(k)(2)(C) |
550 |
550 |
550 |
| SEP Maximum Compensation – 408(k)(3)(C) |
250,000 |
245,000 |
245,000 |
| SIMPLE Plans |
| SIMPLE Maximum Contributions – 408(p)(2)(E) |
11,500 |
11,500 |
11,500 |
| Catch-up Contributions – 414(v)(2)(B)(ii) |
2,500 |
2,500 |
2,500 |
| 401(k), 403(b), Profit-Sharing Plans, etc. |
| Annual Compensation – 401(a)(17)/404(l) |
250,000 |
245,000 |
245,000 |
| Elective Deferrals – 402(g)(1) |
17,000 |
16,500 |
16,500 |
| Catch-up Contributions – 414(v)(2)(B)(i) |
5,500 |
5,500 |
5,500 |
| Defined Contribution Limits – 415(c)(1)(A) |
50,000 |
49,000 |
49,000 |
| ESOP Limits – 409(o)(1)(C) |
1,015,000
200,000 |
985,000
195,000 |
985,000
195,000 |
| Other |
| HCE Threshold – 414(q)(1)(B) |
115,000 |
110,000 |
110,000 |
| Defined Benefit Limits – 415(b)(1)(A) |
200,000 |
195,000 |
195,000 |
| Key Employee – 416(i)(1)(A)(i) |
165,000 |
160,000 |
160,000 |
| 457 Elective Deferrals – 457(e)(15) |
17,000 |
16,500 |
16,500 |
| Control Employee – 1.61-21(f)(5)(i) |
100,000 |
95,000 |
95,000 |
| Control Employee – 1.61-21(f)(5)(iii) |
205,000 |
195,000 |
195,000 |
| Taxable Wage Base |
110,100 |
106,800 |
106,800 |
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