IRS Announces Limits Increase for 2012

On October 20, 2011, the Internal Revenue Service announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for Tax Year 2012.

Effective January 2012, participants will be able to contribute up to $17,000 to both the UTSaver 403(b) Tax Sheltered Annuity (TSA) and the UTSaver 457(b) Deferred Compensation plan (DCP), an increase of $500.00 annually in each plan.

The age 50 catch up remains unchanged at $5,500.00, meaning participants over age fifty can contribute up to $22,500 in both the UTSaver TSA and the UTSaver DCP.

The Optional Retirement Program annual limit will increase from $49,000 to $50,000.00.

To learn more, you can view the IRS release at www.irs.gov/newsroom/article/0,,id=248482,00.html.
 

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