New Contribution Limits for Employer Sponsored Plans

Issue 22, 2012

 Use the new Internal Revenue Service (IRS) retirement plan contribution, compensation and benefit limits for 2012 as a reason to contact your retirement plan sponsor clients and prospects. For employees participating in 401(k) and 403(b) plans, the 2012 elective deferral (contribution) limit has increased from $16,500 to $17,000. The catch-up contribution limit remains the same at $5,500, which means plan participants who are age 50 and older can contribute up to $22,500 in 2012. The contribution limits for SIMPLE IRAs and SEP IRAs remain the same in 2012 but these plan types may offer lower-cost plan alternatives for small business owners who want to offer a retirement plan to their employees.

Promote the Value of Maximizing Contributions

To help your retirement plan sponsors promote the increased limits to enhance the value of their retirement programs, we have created this table as a handy reference containing both 2012 and prior year limits. Use this new information as a reason to:

Marketing Materials and Tools
Visit the Retirement Toolbox under Employer-Sponsored Retirement Plans on retirementpowerplay.com for the summary table and new Fact Sheets and a Small Business Retirement Plans brochure you can use with clients.