The IRS has announced COLA adjustments for employee benefit plan limits for 2012. This is the first time since 2009 that the COLA process has resulted in increased limits over the previous year. Among the new limits are:
- The elective deferral limit is raised from $16,500 to $17,000.
- The 401(a)(17) compensation limit is raised from $16,500 to $17,000.
- The limit on aggregate contributions to defined contribution plans is raised from $49,000 to $50,000.
- The limits on amounts payable from defined benefit plans is raised from $195,000 to $200,000.
- The social security taxable wage base is raised from $106,800 to $110,000.
The IRS website includes a table that traces all of the limits since 1989. www.irs.gov/pub/irs-tege/cola_table.pdf