Effective for the year 2012 the Internal Revenue Service has raise the amounts that can be contributed to retirement accounts:
|
Type of Retirement Plan |
2011 Contribution Limit |
2012 Contribution Limit |
Increase in Contribution |
|
401(k), 403(b) and 457(b) |
$16,500 |
$17,000 |
$500 |
|
If you are over 50 the catch up |
5,500 |
5,500 |
0 |
|
Defined Contribution, 415(c), SEP |
49,000 |
50,000 |
1,000 |
|
IRA |
5,000 |
5,000 |
0 |
|
Limit on Annual benefits for Defined Benefit Plans 415(b) |
200,000 |
195,000 |
5,000 |
This will allow more contributions to grow your money tax-deferred until retirement. Should you have any questions or need some assistance, please contact your ShindelRock [1] tax professional.