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Dear Stephanie,
I thought you would find the below information on Pension Plan Limitations for 2012 helpful. Please let us know if you have any questions on any of the information listed.
-Your friends at HW&Co.
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For additional information and discussion on this topic, please get in touch with your regular HW&Co. professional or one of our tax professionals listed below.
Mary Eileen Vitale, CPA, CFP®
Principal & Director
HW Tax Advisors Group
vitale@hwco.com
216.378.7210
Ally Brikman, CPA/ABV
Senior Accountant
brikman@hwco.com
216.378.7219
Click here to see all of our previous e-newsletters.
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On October 20, 2011, the IRS announced cost-of-living adjustments applicable to dollar limitations for pension plans and other items for tax year 2012. Of note are the following items which changed and items which remained unchanged:
Items that changed:
· Deferral Contribution Limit Increased
· Annual Compensation Limit Increased
· Social Security Taxable Wage Base Increased
Items that remain unchanged:
· IRA Contribution Limit
· Catch-Up Contributions
· SIMPLE Maximum Contribution
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Code Section
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2012
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2011
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2010
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IRAs
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IRA Contribution Limit - 219(b)(5)(A)
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5,000
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5,000
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5,000
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IRA Catch-Up Contributions - 219(b)(5)(B)
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1,000
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1,000
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1,000
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IRA AGI Deduction Phase-out Starting at
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Joint Return
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92,000
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90,000
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89,000
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Single or Head of Household
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58,000
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56,000
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56,000
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SEP
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SEP Minimum Compensation - 408(k)(2)(C)
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550
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550
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550
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SEP Maximum Compensation - 408(k)(3)(C)
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250,000
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245,000
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245,000
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SIMPLE Plans
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SIMPLE Maximum Contributions - 408(p)(2)(E)
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11,500
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11,500
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11,500
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Catch-up Contributions - 414(v)(2)(B)(ii)
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2,500
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2,500
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2,500
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401(k), 403(b), Profit-Sharing Plans, etc.
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Annual Compensation - 401(a)(17)/404(l)
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250,000
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245,000
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245,000
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Elective Deferrals - 402(g)(1)
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17,000
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16,500
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16,500
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Catch-up Contributions - 414(v)(2)(B)(i)
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5,500
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5,500
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5,500
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Defined Contribution Limits - 415(c)(1)(A)
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50,000
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49,000
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49,000
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ESOP Limits - 409(o)(1)(C)
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1,015,000
200,000
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985,000
195,000
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985,000
195,000
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Other
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HCE Threshold - 414(q)(1)(B)
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115,000
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110,000
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110,000
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Defined Benefit Limits - 415(b)(1)(A)
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200,000
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195,000
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195,000
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Key Employee - 416(i)(1)(A)(i)
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165,000
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160,000
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160,000
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457 Elective Deferrals - 457(e)(15)
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17,000
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16,500
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16,500
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Control Employee - 1.61-21(f)(5)(i)
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100,000
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95,000
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95,000
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Control Employee - 1.61-21(f)(5)(iii)
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205,000
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195,000
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195,000
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Taxable Wage Base
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110,100
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106,800
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106,800
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Additional Limits
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Adoption Assistance Programs - 137(a)(2), 137(b)(1)
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12,650
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13,360
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Qualified Transportation Fringe Benefit – Per Month Limits
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132(f)(2)(A) Transit Pass
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125
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230
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132(f)(2)(B) Parking
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240
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230
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Health Savings Account Contribution Limit
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Single
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3,100
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3,050
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Family
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6,250
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6,150
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Source: IRS website - October 20, 2011
Additional information can be found on the IRS website at www.irs.gov. If you have any questions on the pension plan limitations or other items for tax year 2012, please contact Mary Eileen Vitale at vitale@hwco.com or (216) 378-7210.
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