Why You Shouldn't Hire Your Payroll Company To Run Your 401K
| |
| Qualified
Plan Limits |
2012 |
2011 |
2010 |
|
401(k) Elective Deferrals |
$17,000 |
$16,500 |
$16,500 |
| Maximum 401(k)
Catch-Up Contributions (1) |
$5,500 |
$5,500 |
$5,500 |
| Defined Benefit Plan
( Max. Annual Benefit) (3) |
$200,000 |
$195,000 |
$195,000 |
Defined Contribution
Plan
(Max. Annual Contribution) (3) |
$50,000 |
$49,000 |
$49,000 |
| SIMPLE Maximum
Deferral |
$11,500 |
$11,500 |
$11,500 |
| Annual Compensation
(for determining Maximum Benefits & Contributions) (4) |
$250,000 |
$245,000 |
$245,000 |
| 457(e)(15) Limits |
$17,000 |
$16,500 |
$16,500 |
| Social Security
Taxable Wage Base (4) |
$110,100 |
$106,800 |
$106,800 |
| Key Employee
Officer Threshold (3) |
$165,000 |
$160,000 |
$160,000 |
| Highly
Compensated Employee (2) |
(5%
owner) or $115,000 |
(5%
owner) or $110,000 |
(5%
owner) or $110,000 |
(1) Participant must be at least 50 years old as
of the end of the applicable year to qualify for catch-up contributions.
(2) For purposes of the Highly Compensated Employee
determination, the applicable limit determines the HCE's for the
following year (Ex: $100,000 or more in 2009 identifies the individuals
that will be HCE's in 2010).
(3) Effective for limitation years ending in calendar
year.
(4) Effective for plan years beginning in calendar
year.
|
