IRS Announces 2012 Inflation-Adjusted Benefit Limits

2011 Limits

2012 Limits

401(k)/403(b) Contributions¹

$16,500

$17,000

457(b) Limit

$16,500

$17,000

Catch-up Contributions

$5,500

$5,500

Compensation Limit² 

$245,000

$250,000

Highly Compensated Employees² 

$110,000

$115,000

Key Employee Officer Compensation² 

$160,000

$165,000

Maximum Annual Benefit 
Defined Benefit Plan²

$195,000

$200,000

Maximum Annual Contribution
Defined Contribution Plan²

$49,000

$50,000

ESOP Limits
Dollar limit for determining lengthening of 5-year period¹

$195,000

$200,000

    Dollar amount for determining max. amount subject to
5-year distribution¹

$985,000

$1,015,000

Maximum SIMPLE contribution

$11,500

$11,500

FICA Wage Base³

$106,800

$110,100

Qualified Transportation Fringe Benefits – Code § 132

Monthly limit for transportation in a commuter highway vehicle or transit pass⁴

$230

$125

Monthly limit for qualified parking

$230

$240

Monthly limit for bicycle commuters

$20

$20

Adoption Assistance Programs⁵ 

Maximum excludable from employee gross income

$13,360

N/A

Exclusion phased out with modified gross income (starting at–ending at)

$185,210–225,210

N/A

Health Savings Accounts

High deductible health plan (HDHP) – minimum annual deductible

   Individual coverage

$1,200

$1,200

   Family coverage

$2,400

$2,400

HDHP – maximum out-of-pocket limit

   Individual coverage

$5,950

$6,050

   Family coverage

$11,900

$12,100

HSA monthly contribution – 1/12 lesser of annual deductible or statutory limit

   Self-only coverage limit

$3,050

$3,100

   Family coverage limit

$6,150

$6,250

Catch-up contributions (age 55 or older)

$1,000

$1,000

1.   Calendar year limitation
2.   For plan years beginning in the calendar year.
3.   Calendar year limitation for FICA withholding purposes and for plan years beginning in the calendar year for retirement plan purposes.
4.   The American Recovery and Reinvestment Act temporarily raised the public transit limit to $230 through 2011.  Absent congressional action, the limit will revert to $125 in 2012. 
5.   The Adoption Assistance Credit, originally set to expire in 2009, was extended through 2011 by the Patient Protection and Affordable Care Act.  Absent congressional action, the credit will no longer be available for the 2012 tax year.