2012 Qualified Plan Limits – YAY!

October 24, 2011

Authored by: benefitsbclp

Last week, the IRS issued a press release announcing its 2012 cost-of-living adjustments for retirement plans. The chart below reflects the qualified plan limits for calendar years 2009-2012.

Type of Limitation	2012	2011	2010	2009

Elective Deferrals (401(k) and 403(b); not including adjustments and catch-ups)	$17,000	$16,500	$16,500	$16,500
457(b)(2) and 457(c)(1) Limits (not including catch-ups)	$17,000	$16,500	$16,500	$16,500
Section 414(v) Catch-Up Deferrals to 401(k), 403(b), 457(b), or SARSEP Plans (1)	$5,500	$5,500	$5,500	$5,500
SIMPLE 401(k) or regular SIMPLE plans, Catch-Up Deferrals	$2,500	$2,500	$2,500	$2,500
415 limit for Defined Benefit Plans	$200,000	$195,000	$195,000	$195,000
415 limit for Defined Contribution Plans	$50,000	$49,000	$49,000	$49,000
Annual Compensation Limit	$250,000	$245,000	$245,000	$245,000
Annual Compensation Limit for Grandfathered Participants in Governmental Plans Which Followed 401(a)(17) Limits (With Indexing) on July 1, 1993	$375,000	$360,000	$360,000	$360,000
Highly Compensated Employee 414(q)(1)(B)	$115,000	$110,000	$110,000	$110,000
Key employee in top heavy plan (officer)	$165,000	$160,000	$160,000	$160,000
SIMPLE Salary Deferral	$11,500	$11,500	$11,500	$11,500
Tax Credit ESOP Maximum balance	$1,015,000	$985,000	$985,000	$985,000
Amount for Lengthening of 5-Year ESOP Period	$200,000	$195,000	$195,000	$195,000
Taxable Wage Base	$110,100	$106,800	$106,800	$106,800
FICA Tax for employees and employers (2)	7.65%	7.65%	7.65%	7.65%
Social Security Tax for employees and employers (2)	6.2%	6.2%	6.2%	6.2%
Medicare Tax for employees and employers	1.45%	1.45%	1.45%	1.45%

Reflects the issuance of IRS News Release IR-2011-103, October 20, 2011

(1) This number is only the catch-up available under Code Section 414(v). Code Sections 457(b)(3) and 402(g) provide separate catch-up rules, which must also be considered in appropriate cases.

(2) For 2011 only, the employee portion of Social Security tax was reduced to 4.2% (instead of 6.2%), for a total FICA tax of 5.65%. This payroll tax holiday was legislated as part of the Tax Relief Act of 2010 and will revert back to 6.2% in 2012.