IRS announces 2012 retirement plan limits


To make it possible for voluntary retirement savings to keep up with inflation, the various numerical limits embedded within qualified retirement plans are indexed for inflation. In October the IRS announced the numbers that will apply in 2012, as shown in the following table:



2012 limit

401(k) and 403(b) employee deferral limit


457 employee deferral limit (most plans)


Catch-up contribution limit


Defined contribution dollar limit


Defined benefit dollar limit


Compensation limit


Highly compensated employee income limit


Key employee in a top heavy plan



Catch-up contributions are permitted by those employees who are 50 or older during the calendar year.


Saving for retirement is probably never harder than during rocky economy times. Itís those times when it is also most important.


(November 2011)

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