IRS Announces 2012 Plan Contribution and Benefit Limits

The Internal Revenue Service announced cost-of living adjustments affecting dollar limitations for pension plans and other retirement-related items for the tax year 2012.

  2011 2012
Elective deferrals 403(b) 16,500 17,000
Catch-up contributions for 403(b) plan participants age 50 and over 5,500 5,500
415 limit on maximum combined employee/employer contributions to defined contribution plans 49,000 50,000
457(b) elective deferrals 16,500 17,000
457(b) catch up contribution (subject to age and other restrictions 16,500 17,000
Annual compensation limit for retirement program purposes 245,000 250,000
Social Security wage base 106,800 110,100
Medicare wage base No limit No limit