IRS Benefit Plan Limits for 2012
The IRS has announced plan limits for 2012 for retirement plans, qualified transportation benefits, adoption assistance programs, long-term care, and medical savings accounts.
2012 Retirement Plan Limits
|§401(k)/403(b) Elective Deferral Maximum||$17,000||$16,500|
|§415 Defined Benefit Dollar Maximum||$200,000||$195,000|
|§415 Defined Contribution Annual Addition Maximum||$50,000||$49,000|
|§457(b) Nonqualified Deferred Compensation Limit||$17,000||$16,500|
|§401(a)(17) Annual Compensation Limit||$250,000||$245,000|
|§414(q) Highly-Compensated Employee Limit||$115,000||$110,000|
|§414(v) Catch-up Contribution Limit||$5,500||$5,500|
Qualified Transportation Benefit Limits
|Qualified Transit Limits||$125||$230|
|Qualified Parking Limits||$240||$230|
Adoption Assistance Program Limits
For employer-provided adoption assistance programs, the maximum amount excludible from an employee’s income for the adoption of a child are shown below. These amounts phase-out for taxpayers with modified adjusted gross income that exceeds certain levels, see below.
Phase-out of excludible amount begins
Phase-out of excludible amount complete
Long-Term Care Premiums
The limits under Section 213 for eligible long-term care premiums that qualify as medical expenses based on attained age before the close of the taxable year are shown below.
|Age 40 or less||$350||$340|
|> 40 but < 50||$660||$640|
|> 50 but < 60||$1,310||$1,270|
|> 60 but < 70||$3,500||$3,390|
Health Savings Accounts
There was a slight increase this year for both individuals and families after remaining unchanged in 2011.
- The new contribution limits for Individual HSA Plans will be $3,100 which is a $50 increase from 2011 levels.
- For Family Plans the new HSA contribution limits will be $6,250 or a $100 increase over 2011 levels.
- The HSA Catch-Up Provisions for plan owners age 55 or over remains unchanged at $1,000. This means that if the participant has an individual plan they can contribute a maximum of $4,100 or $7,350 if they are in a family plan.
Medical Savings Accounts
Medical Savings Accounts (MSAs) are available to employees of small businesses and self-employed individuals if they participate in high-deductible health plans.
- For tax years beginning in 2012, the annual deductible for an MSA high-deductible health plan may not be less than $2,100 and not more than $3,150 for single coverage, and not less than $4,200 and not more than $6,300 for family coverage.
- Also, annual out-of-pocket expenses cannot exceed $4,200 for single coverage and $7,650 for family coverage.