IRS Announces Employee Benefit Plan and Other Retirement Related Limits for 2012
In October, the IRS announced the cost of living adjustment affecting dollar limits for defined contribution and defined benefit plans and other retirement-related items for 2012.
Contribution limits to an IRA remain unchanged at $5,000. The elective deferral (contribution) limit for employees who participate in section 401(k), 401(b) or 457(b) plans increases from $16,500 to $17,000. The catch-up contribution limit under those plans for those age 50 and over is unchanged at $5,500.