Health Care Reform, Taxes, Fees & Penalties

IRS Announces 2012 Dollar Limits and COLA Increases Affecting Benefits Plans

On October 20, 2011, the IRS issued its annual announcements specifying the dollar limits and COLA increases affecting numerous tax provisions and social security changes for the upcoming tax year (i.e., the 2012 calendar year). The announcements with the 2012 information include: IRS News Release IR-2011-103; COLA Increases for Dollar Limitations on Benefits and Contributions; IRS News Release IR-2011-104; Rev. Proc. 2011-52; Fact Sheet on 2012 Social Security Changes (Oct. 2011).

For all the details, click the links above. Highlights include:

  • HCE Threshold . . . . . . . . . . .$115,000 (up from $110,000 in 2011)
  • Maximum Elective Deferral $ 17,000 (up from $16,500 in 2011)
    (401(k), 403(b), most 457 plans)
  • Catch-Up Contributions. . . .$ 5,500 (unchanged from 2011)
    (for those over age 50)
  • IRA Contribution Limit . . . .$ 5,000 (unchanged from 2011)
  • IRA Catch-Up Contributions$ 1,000 (unchanged from 2011)
  • SS Taxable Wage Base . . . . .$110,100 (up from $106,800 in 2011)
    (OASDI only, no limit on wage base for Medicare portion)
  • Qualified Transportation benefit
  • –Monthly Parking . . . . . . . .$ 240 (up from $230 in 2011)
  • –Commuter Van . . . . . . . . . .$ 125 (down from $230 in 2011)
  • Dependent Exemption . . . . .$ 3,800 (up from $3,700 in 2011)
  • Standard Deduction . . . . . . .$ 11,900 (up from $11,600 in 2011)
    Married filing jointly
  • Standard Deduction . . . . . . .$ 5,950 (up from $5,800 in 2011)
    Singles and married filing separately
  • Standard Deduction . . . . . . .$ 8,700 (up from $8,400 in 2011)
    Head of household

If you are reading a paper copy of this Leavitt Bulletin, the links to the Government Announcements are:

  • Rev. Proc. 2011-52: http://www.irs.gov/pub/irs-drop/rp-11-52.pdf