Client Advisor - Retirement Plan Limitations for 2012
BMF is providing this alert to keep you abreast of the recent changes affecting employee benefit plans.
The Internal Revenue Service announced on October 28 the cost-of-living adjustments applicable to the dollar limitations for pension plans and defined contribution plans for the tax year 2012. Several of the limits have changed from 2011 as noted below.
Code Section | 2012 | 2011 | 2010 |
IRAs
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| IRA Contribution Limit - 219(b)(5)(A) | $5,000 | 5,000 | 5,000 |
| IRA Catch-Up Contribution - 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 | 55,000 |
SEP
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| SEP Minimum Compensation - 408(k)(2)(C) | $550 | 550 | 550 |
| SEP Maximum Compensation - 408(k)(3)(C) | $250,000 | 245,000 | 245,000 |
401(k), 403(b), Profit-Sharing Plans, etc.
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| Annual Compensation - 401(a)(17)/404(l) | $250,000 | 245,000 | 245,000 |
| Elective Deferrals - 402(g)(l) | $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 Limit - 409(o)(1)(C) - Account Balance | $1,015,000 | 985,000 | 985,000 |
| ESOP Limit - 409(o)(1)(C) - Lengthening 5-Year Period | $200,000 | 195,000 | 195,000 |
Other
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| HCE Threshold - 414(q)(1)(B) | $115,000 | 110,000 | 110,000 |
| Defined Benefit Annual Limit - 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 |
| Social Security Taxable Wage Base | $110,100 | 106,800 | 106,800 |
For more information, contact:
This information has been prepared by EisnerAmper LLP for informational purposes only. These materials do not constitute accounting, tax or legal advice and cannot be relied upon by any taxpayer for the purpose of avoiding penalties imposed under the Internal Revenue Code.
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