Employees and individual retirement plan owners can contribute more toward their retirement benefits next year.
Maximum 401(k) contributions in 2012 will be $17,000 – an increase of $500. If you were born before 1963, you can contribute as much as $22,500. These contribution limits will apply to those with 403(b) or 457 plans, too.
The contribution limit for SIMPLE plans is still $11,500. But if you are 50 or older in 2012, you can contribute an additional $2,500.
Plan contributions can be based on up to $250,000 of salary next year. If you would like to take advantage of the new contribution limits, be sure to complete a new election form with your employer in 2012.
If you are an employer and interested in learning more about the new 2012 plan contribution limits that apply to employer contributions, please contact your plan’s third party administrator. Your Rea advisor can also answer questions you may have about 401(k) contribution limits, as well as plan governance, design or administration.