IRS Announces Higher Contribution Limits For Most Tax-Deferred Retirement Plans

The IRS Oct. 20 released a list of cost-of-living adjustments affecting dollar limits on tax-deferred contributions to retirement plans and eligibility for retirement-related benefits for the 2012 tax year.

Adjustments to the dollar limits on benefits and contributions under qualified retirement plans are authorized under §415, which requires that the limits be adjusted annually for cost-of-living increases, IRS said in a news release (IR-2011-103).

Deferred compensation plans also are affected by the adjustments, which are similar to those used to adjust Social Security benefit amounts.

The list for the 2012 tax year included adjustments and ...