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22
Internal Revenue Code Limit
2012
2011
401(k) plan Elective deferrals
$17,000
$16,500
403(b) plan Elective deferrals
$17,000
$16,500
Governmental 457(b) plan Elective deferrals
$17,000
$16,500
Catch-up contribution limit 401(k), 403(b), and governmental 457(b) plans
$5,500
$5,500
SIMPLE plan elective deferrals
$11,500
$11,500
SIMPLE plan catch-up contributions
$2,500
$2,500
Defined benefit plans maximum annual annuity
$200,000
$195,000
Defined contribution plans maximum annual addition
$50,000
$49,000
Maximum annual compensation
defined benefit plans, defined contribution plans, and SEPs
$250,000
$245,000
Annual compensation definition of "highly compensated employee"
$115,000
$110,000
Annual compensation "officer" for "key employee" definition
$165,000
$160,000
Simplified Employee Pension (SEP) minimum compensation
$550
$550
Tax credit ESOP
5-year limit
$1,015,000
$985,000
1-year extension
$200,000
$195,000
Summary of 2012 Qualified Retirement Plan Limits
By Leonard G. Brown, FSA, MAAA, Pension Benefit Consultants, Member, CSCPA Employee Benefit Plans Special
Interest Group
The IRS annually adjusts qualified retirement plan limits for increases in the cost of living. The following table summarizes
the 2012 limits as reported in IR-2011-103.