Vision Payroll

October 23, 2011

IRS Announces Adjustments to SIMPLE Plan Limits for 2012

IRS Announces Adjustments to SIMPLE Plan Limits for 2012
IRS Announces Adjustments to SIMPLE Plan Limits for 2012
In IR-2011-103, the Internal Revenue Service (IRS) announced cost-of-living adjustments to the limits on SIMPLE plan contributions for 2012. The limitation for SIMPLE plans is codified in §408(p)(2)(E) of the Internal Revenue Code of 1986 (IRC). This section also requires annual adjustments as necessary to keep pace with inflation in a manner similar to that required by IRC §415 for retirement plans.

2012 Contribution Limits Remains Unchanged

For 2012, the SIMPLE plan regular limitation remains at $11,500. The age 50 and over catch-up contribution remains at $2,500 for individuals who plan to reach age 50 before the end of 2012.

Contact Vision Payroll for More Information on 2012 SIMPLE Plan Changes

Contact Vision Payroll if you have questions on the SIMPLE plan contribution limits or get further information at Important Facts and Figures.

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