IRS 2011 Pension Limits—This Affects Highly Compensated for Non-Discrimination Testing (Flex-HRA)

Please click on the link for more details:  http://www.irs.gov/retirement/article/0,,id=96461,00.html

A few things to note:

The elective deferral limit for 401(k), 403(b) and 457(b) plans increases to $17,000 in 2012 ($16,500 in 2011).  The limitation on catch up contributions stays the same at $5,500.

The maximum "annual addition" limit for a defined contribution plan increases to $50,000 in 2012 ($49,000 in 2011). 

The defined benefit limit increases to $200,000 in 2012  ($195,000 in 2011).

The annual dollar limit on compensation that can be taken into account increases to $250,000 in 2012 ($245,000 in 2011).

Compensation for determining highly compensated employee ("HCE") status increases to $115,000.  The increased dollar amount generally won’t have any effect until the 2013 plan year.  Ex: Employees earning more than $115,000 in 2012 will be considered HCEs for 2013 plan year testing.

Roger J. Rovell, J.D., LL.M., President

Fiduciary Partners Retirement Group

2729 SR 580, Suite C

Clearwater, FL 33761

(800)371-0232

www.fiduciaryprg.com

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About rjoyner

Ric Joyner, CEBS, GBA, CFCI Customer Experience Officer Ric is a founder of eflexgroup.com a national web based TPA for Cafeteria, HRA, HSA, Transit, VEBA and COBRA plans. eflexgroup is a leader in self-service employee benefit systems. eflexgroup was the first TPA in the industry to go “online” in 1999 allowing employees to self-serve 24 hours per day. He has lead the industry with eflex by placing provable customer service statistics, live, on eflexgroup.com Ric is celebrating his 32nd year employee benefits. He helped create TPAs such as TASC and Employee Benefits Corporation in Madison WI. He was a licensed insurance agent for 29 years. The designations Mr. Joyner holds are; Certified Employee Benefits Specialist, Group Benefit Associate, Certified Flexible Compensation Instructor, board approved by ASPA to teach Cafeteria Plan regulations. Ric also has a bachelors of science in Information Technology and MBA (emphasis is project management) and graduated summa cum laude from Capella University with a 4.0. Ric helped found the National Association of Professional Benefit Administrators (NAPBA.org). NAPBA is dedicated to training administrators in best practices and grass roots lobbying. Ric has served in the past as the Wisconsin Association of Health Underwriters State President in 2003. Ric is a frequent speaker and article writer for prestigious associations such as NAHU.org, NAPBA.org, Wisconsin SHRM, Austin SHRM, PACE.org, International Foundation of Employee Benefits, Tampa Bay AHU, WI AHU, Florida AHU, Florida NAIFA and participates on the List Serves (compliance programs for Consumer Driven Products of NAHU and International Foundation of Employee Benefits)

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