Retirement Plan Compliance Information
IRS CIRCULAR 230 DISCLOSURE: Redwood Pensions, LLC does not provide tax or legal advice. To the extent this communication mentions or discusses any tax matter, it is not intended or written to be used, and cannot be used by the recipient or any other person, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party the matter addressed herein. Any taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.
IRS CIRCULAR 230 DISCLOSURE: Redwood Pensions, LLC does not provide tax or legal advice. To the extent this communication mentions or discusses any tax matter, it is not intended or written to be used, and cannot be used by the recipient or any other person, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party the matter addressed herein. Any taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.
| Retirement-Related Annual Limits | 2011 | 2012 |
| Maximum 401(k)/403(b) contribution (calendar year) | $16,500 | $17,000 |
| “Catch-Up” 401(k)/403(b) contribution (age 50 by end of calendar year) | $5,500 | $5,500 |
| Maximum Defined Contribution plan benefit | $49,000 | $50,000 |
| Maximum Defined Benefit plan benefit | $195,000 | $200,000 |
| Maximum considered compensation | $245,000 | $250,000 |
| “Highly Compensated Employee” definition (prior-year lookback) | $110,000 | $115,000 |
| “Key Employee” definition (applicable to officers) | $160,000 | $165,000 |
| Social Security Taxable Wage Base | $106,800 | $110,100 |
