On October 20, 2011, the Internal Revenue Service announced cost of living adjustments affecting various limitations applicable to pension and other retirement plans (IR 2011-103). Many of the limitations remain unchanged because they are indexed in $1000 or $5000 increments, but several will change for 2012. Some of the better-known limitations are:

• The limitation on elective deferrals (salary reduction contributions) under 401k, 403(b), and most 457(b) plans, as well as the federal government's Thrift Savings Plan, is increased from $16,500 to $17,000.

• The limit on "catch-up contributions" for those who are age 50 and over remains unchanged at $5,500.

• The limit on compensation that may be taken into account under a plan is $250,000, up from $245,000.