The Internal Revenue Service (IRS) announced this week the contribution limits for retirement plan participants for Tax Year 2012. Many of the limits are unchanged due to rounding rules, but this year (for the first time since 2009) a few of the key savings plans limits did increase.
The maximum annual contribution employees can make through salary reduction to a 401(k), 457(b) or 403(b) plan will increase to $17,000 in 2012 from the current rate of $16,500. Catch-up contributions for employees older than 50 years of age will remain the same at a maximum of $5,500 for the year.
More information on the IRS’ retirement plan contribution limits and cost of living adjustments can be found at the IRS Web site.