The annual Cost of Living (COL) adjustments for retirement plans for tax year 2012 have been announced. Some plan limits will increase, so pay attention to these highlights shared by Lockton Companies:
- Elective deferral or contribution limit for employees in 401(k) plans increased from $16,500 to $17,000
- 415 limitation for defined contribution plans increased from $49,000 to $50,000
- Maximum compensation limit increased from $245,000 to $250,000
- Dollar limitation concerning the definition of a key employee in a top-heavy plan is increased from $160,000 to $165,000
- Limitation used in the definition of highly compensated employee is increased from $110,000 to $115,000
- Catch-up contribution limit for those aged 50 and over remains unchanged at $5,500