Legislative and Regulatory
IRS Announces 2012 Retirement Plan Limits (Oct 20, 2011)
Instant Insights (Oct. 20, 2011)
IRS Announces 2012 Retirement Plan Limits
|
2012 |
2011 |
2010 |
2009 |
|
|
Limit on 401(k) and 403(b) Elective Deferrals* |
$17,000 |
$16,500 |
$16,500 |
$16,500 |
|
Limit on Deferrals to 457 Plan* |
$17,000 |
$16,500 |
$16,500 |
$16,500 |
|
Catch-up Contribution for 401(k), 403(b), 457, SARSEP* |
$5,500 |
$5,500 |
$5,500 |
$5,500 |
|
Defined Contribution Plan Maximum Annual Addition |
$50,000 |
$49,000 |
$49,000 |
$49,000 |
|
Defined Benefit Plan Maximum Benefit |
$200,000 |
$195,000 |
$195,000 |
$195,000 |
|
Compensation Limit |
$250,000 |
$245,000 |
$245,000 |
$245,000 |
|
Definition of Highly Compensated Employee** |
$115,000 |
$110,000 |
$110,000 |
$110,000 |
|
Definition of Key Employee Officer |
$165,000 |
$160,000 |
$160,000 |
$160,000 |
|
Social Security Taxable Wage Base (OASDI)*** |
$110,100 |
$106,800 |
$106,800 |
$106,800 |
Individual Retirement Account (IRA)
|
|
2012 |
2011 |
2010 |
2009 |
|
Maximum IRA contributions |
$5,000 |
$5,000 |
$5,000 |
$5,000 |
|
IRA catch-up contribution |
$1,000 |
$1,000 |
$1,000 |
$1,000 |
* Limits on these items are indexed for inflation in $500 increments rounded to the nearest lower multiple of $500.
** Because of the look-back rule, the dollar limit applies in determining Highly Compensated Employees in the following year (i.e., compensation in 2012 is used to determine HCE status for 2013)..
*** No limit for Medicare tax.
This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for investment, accounting, legal or tax advice.
IRS Circular 230 Disclosure: This communication was written in connection with the potential promotion or marketing, to the extent permitted by applicable law, of the transaction(s) or matter(s) addressed herein by persons unaffiliated with JPMorgan Chase & Co. However, JPMorgan Chase & Co. and its affiliates do not provide tax advice. Accordingly, to the extent this communication contains any discussion of tax matters, such communication is not intended or written to be used, and cannot be used, for the purpose of avoiding tax-related penalties. Any recipient of this communication should seek advice from an independent tax advisor based on the recipient's particular circumstances.