Internal Revenue Service Publishes 2012 Pension Plan Limitations

On October 20, the IRS announced cost-of-living adjustments applicable to certain dollar limitations for employee pension benefit plans for 2012:

• The annual benefit limit for defined benefit plans is increased from $195,000 to $200,000.
• The annual addition limit for defined contribution plans is increased from $49,000 to $50,000.
• The Section 402(g) limit with respect to the exclusion for elective deferrals to a 401(k), 403(b) or 457 is increased from $16,500 to $17,000.
• The annual compensation limit under Sections 401(a)(17), 404(l), 408(k)(3)(C) and 408(k)(6)(D)(ii) is increased from $245,000 to $250,000.
• The dollar limit for key employees in a top-heavy plan under Section 416(i)(1)(A)(i) is increased from $160,000 to $165,000.