401(k), 403(b) and 457 Plan Limits for Year 2012

401(k), 403(b) and 457 Plan Limits for Year 2012

 

Good news – you can set aside up to $17,000 in total in various kinds of employer sponsored plans.   Please note this individual limit is the maximum amount a person can electivly save as deferred salary inside section 401(k), 403(b) or 457 plan.

Senior citizens and individuals age 50 years old or older can also save an additional $5,500 as a designated “catch up” contribution.   This brings your total limit to $23,500.00 . This is a great opportunity for those who want fill up the retirement income bucket.

Please note there is a maximum limit on your total contribution in 401K plan. For the year 2012, that limit is $50,000, meaning you total contribution including you and your employer has to be less than $50,000.

New limitations was announced by IRS in form  IR-2011-103.  You can also check out the IRS website for other kinds of retirement plan limitations.

 

Sanjiv subscriber

  • Just to clarify, the 2012 contribution limit for 401(k), 403(b) or 457 plans is $17,000.  If you are over age 50 by 12/31/2012, you can contribute an additional $5,500, making the over age 50 limit $22,500 for 2012.  Follow me @rankmy401k:twitter