Total Articles: 4
IRS Announces Pension Plan Limitations for Tax Year 2012
The Internal Revenue Service has released a detailed list of pension plan and other retirement-related contribution limitations for the Tax Year 2012 that were triggered by an increase in the cost-of-living index. A number of the pension plan limitations will change for 2012 because the increase in the cost-of-living index met the statutory thresholds for the adjustment. Other limitations, however, will remain unchanged.
Benefit Plans: 2012 COLAs
The Internal Revenue Service has announced the 2012 cost-of-living adjustments (COLAs) for retirement plans. Most of the limits related to retirement plans are increased.
2012 Cost of Living Adjustments for Retirement Plans
The Internal Revenue Service recently announced its cost-of-living adjustments applicable to dollar limitations for retirement plans and Social Security generally effective for Tax Year 2012 (see IR 2011-103). Notably, the limitation on annual salary deferrals into a 401(k) plan will increase from $16,500 to $17,000. The dollar limits are as follows:
IRS Announces 2012 Cost-of-Living Increases to Pension Plan Limits
On October 20, 2011, the Internal Revenue Service announced cost of living adjustments affecting various limitations applicable to pension and other retirement plans (IR 2011-103). Many of the limitations remain unchanged because they are indexed in $1000 or $5000 increments, but several will change for 2012. Some of the better-known limitations are:
