IRS Announces Contribution Increases for 2012

The Internal Revenue Service has announced an increase in the maximum contribution amounts for retirement plans for Tax Year 2012. These changes directly affect how much you can contribute to your State of Missouri Deferred Compensation Plan account.

The annual contribution limit for employees who participate in the Plan will increase from $16,500 to $17,000. In turn, the maximum contribution for the preretirement catch-up provision, for employees who are within 3 years of their retirement date and have not previously contributed the maximum deferral amount each year, will increase from $33,000 to $34,000 annually. The additional catch-up contribution limit for those aged 50 and over will remain unchanged at $5,500.

The adjusted gross income (AGI) maximum limit to qualify for the saver’s credit for low-and moderate-income participants will be $57,500 for married couples filing jointly (currently $56,500) and $28,750 for married individuals filing separately and for singles (currently $28,250).

You can change your contribution amounts at any time by logging into your online account or by calling a Participant Service Representative at 1-800-392-0925.