Plan Limits and Retirement Plan News
Plan Limits & News
| 401(k) Profit Sharing Plan Limitations |
| Calendar Year |
2010 |
2011 |
2012 |
| 402(g) Limit |
$16,500 |
$16,500 |
$17,000 |
| Catch-Up Limit |
$5,500 |
$5,500 |
$5,500 |
| HCE Compensation |
$110,000 |
$110,000 |
$115,000 |
| 401(a)(17) Limit |
$245,000 |
$245,000 |
$250,000 |
| 415 Limit |
$49,000 |
$49,000 |
$50,000 |
| 404 Deduction Limit |
25% |
25% |
25% |
| TWB |
$106,800 |
$106,800 |
$110,100 |
DEFINITIONS - Retirement Plan Administration
402(g) Limit: the maximum 401(k) permited to be contributed to all Plans by a participant.
Catch-Up Limit: the maximum additional 401(k) permitted for those age 50 or greater.
401(a)(17) Limit: the maximum compensation that can be considered for Plan purposes.
415 Limit: the maximum total contributions that can be contributed to a Plan for a participant.
404 Deduction Limit: the maximum deductable contribution, calculated as a percent of eligible compensation.
TWB: Social Security Taxable Wage Base
HCE: the definition of Highly Compensated Employee is a more than 5% owner in the current or prior year or a participant with compensation in the prior year over the HCE compensation limit for the prior year.
Key: the definition of a Key employee is a more than 5% owner, or a more than 1%, up to 5%, owner with compensation over $150,000 or an officer with compensation over $165,000. The determination of Key employee is made on the last day of the prior plan year.
ASPPA Cinncinnati Pension Conference
"TPA has a great group to work with who provide exceptional service. Every aspect of our 401(k) plan is handled professional, promptly and with a friendly working relationship. TPA has exceeded our expectations and I would highly recommend them to be your plan administrator."
- Carol Burchfield
A & A Safety, Inc.