Retirement Contributions Update

The Internal Revenue Service recently announced the new dollar limits on benefits and compensation for defined contribution retirement plans, including 401(k) plans.

The new limits will be effective for individuals as of January 1, 2012 and for all plan years beginning on or after January 1, 2012. This is the first time since 2009 that these limits have been increased.

The following table shows the 2011 limits in the first column and the new 2012 limits in the second column:

Salary Deferrals $16,500 $17,000

Catch-Up Contributions* $5,500 $5,500

Annual Contribution Limit** $49,000 $50,000

Annual Compensation Limit $245,000 $250,000

*(Age 50 & Over)

**(Plus Catch-Up Contribution, if applicable)

If you have any questions about these changes or any other employee benefit plan issues, please contact our office.

Curtis & Curtis, P.C. is a full service law firm located in Jackson, Michigan providing superior legal services and advice to individuals, families and businesses throughout mid-Michigan since 1901.

This publication is provided for general informational purposes only and does not constitute formal legal or other professional advice. No attorney-client relationship is created with you when you read this information. The above information may be changed without notice and is not guaranteed to be complete, correct or up-to-date, and may not reflect the most current legal developments. If you have any questions or need assistance, please contact Curtis & Curtis, P.C.