The new Cost-of-Living adjustments for retirement plans were announced by the Internal Revenue Service on October 20. Here is a list of the breakdown of the increase for different plans.
| 2012 | 2011 |
401(k) deferral limits | $17,000 | $16,500 |
Catch-up Contribution to Qualified Plans | $5,500 | $5,500 |
Highly compensated employee | $115,000 | $110,000 |
Annual compensation limit | $250,000 | $245,000 |
Social Security taxable wage base | $110,000 | $106,800 |
Section 415 limit | $50,000 | $49,000 |
Traditional IRA limits | $5,000 | $5,000 |
Catch-up Contribution to IRAs | $1,000 | $1,000 |