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Employee Benefits

2012 Benefits Limitations

The IRS announced cost-of-living adjustments to various dollar limitations that will apply to pension plans for 2012. Some of these limits are fixed by scheduled statutory increases.

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	2007	2008	2009	2010	2011	2012
401(k)/403(b) plan maximum elective deferral	$15,500	$15,500	$16,500	$16,500	$16,500	$17,000
457 deferral limit	$15,500	$15,500	$16,500	$16,500	$16,500	$17,000
401(k)/403(b)/457 catch-up	$5,000	$5,000	$5,500	$5,500	$5,500	$5,500
Defined contribution maximum annual addition	$45,0001	$46,0001	$49,0001	$49,0001	$49,0001	$50,0001
Defined benefit maximum annual pension	$180,0001	$185,0001	$195,0001	$195,0001	$195,0001	$200,0001
Qualified plans maximum compensation limit	$225,000	$230,000	$245,000	$245,000	$245,000	$250,000
Highly compensated	$100,000	$105,000	$110,000	$110,000	$110,000	$115,000
Transit pass limit	$110	$115	$2302	$230	$230	$125
Parking benefit limit	$215	$220	$230	$230	$230	$240
IRA limit	$4,000	$5,000	$5,000	$5,000	$5,000	$5,000
IRA catch-up	$1,000	$1,000	$1,000	$1,000	$1,000	$1,000
SIMPLE limit	$10,500	$10,500	$11,500	$11,500	$11,500	$11,500
SIMPLE catch-up	$2,500	$2,500	$2,500	$2,500	$2,500	$2,500
Taxable wage base
Social Security	$97,500	$102,000	$106,800	$106,800	$106,800	$110,100
Medicare	no limit	no limit	no limit	no limit	no limit	no limit
Payroll tax rate
Social Security	6.20%	6.20%	6.20%	6.20%	6.20%	6.20%
Medicare	1.45%	1.45%	1.45%	1.45%	1.45%	1.45%

1 Applies to limitation years ending within the calendar year.
2 Effective March 1, 2009