The IRS bumped the 2012 elective deferral limit for 457(b) plans from $16,500 to $17,000, along with a number of inflation adjustments. Highlights include:
- The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457(b) plans, and the federal government’s Thrift Savings Plan is increased from $16,500 to $17,000.
- The catch-up contribution limit for those aged 50 and over remains unchanged at $5,500.
- The limitation on the annual benefit under a defined benefit plan under Section 415(b)(1)(A) is increased from $195,000 to $200,000.
- The limitation for defined contribution plans under Section 415(c)(1)(A) is increased from $49,000 to $50,000.
- The limitation used in the definition of highly compensated employee under Section 414(q)(1)(B) is increased from $110,000 to $115,000.
- The annual compensation limit under Section 401(a)(17) is increased from $245,000 to $250,000.