New Dollar Limitations for 2012 Retirement PlansNew Dollar Limitations for 2012 Retirement Plans

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The IRS just released new dollar limitations for retirement plans for 2012

Please click on the link for more details:
http://www.irs.gov/retirement/article/0,,id=96461,00.html

A few things to note:
 
The elective deferral limit for 401(k), 403(b) and 457(b) plans increases to $17,000 in 2012 ($16,500 in 2011).  The limitation on catch up contributions stays the same at $5,500.

The maximum “annual addition” limit for a defined contribution plan increases to $50,000 in 2012 ($49,000 in 2011).

The defined benefit limit increases to $200,000 in 2012  ($195,000 in 2011).

The annual dollar limit on compensation that can be taken into account increases to $250,000 in 2012 ($245,000 in 2011).

Compensation for determining highly compensated employee (“HCE”) status increases to $115,000.  The increased dollar amount generally won’t have any effect until the 2013 plan year.  Ex: Employees earning more than $115,000 in 2012 will be considered HCEs for 2013 plan year testing.