Deferral Limits Increase for 2012

Deferral Limits Increase
for 2012

To help public employees be better prepared for retirement, and as part of a sound saving strategy, they can now defer more into their Ohio Deferred Compensation account starting in 2012.

Please let your employees know that if they are not deferring the maximum and would like to, they can do it in two ways.

Employees Can Call Us: Employees can call the Service Center at 1-877-644-6457 to increase their deferrals. Their election must be received in our office by December 8, 2011 to ensure that the increase is effective with their first pay in January 2012. Changes received after December 8 will be effective as soon as possible.

Employees Can Do It Themselves: They can choose to use the automated telephone system (ATS) or participant website to increase to the new deferral limits. However, the ATS and website cannot accept increases up to the new deferral limits before December 10, 2011. Employees can log in to their account on the participant website at www.Ohio457.org to increase their deferrals to these new limits after December 10.

Annual Deferral Limits

2011 2012
Regular Deferral Limit $16,500 $17,000
Age 50-Plus Deferral Limit $22,000 $22,500
Catch-up Deferral Limit $33,000 $34,000

The Internal Revenue Service recently announced this increase to employee annual deferral limits for 2012. Each year, the IRS sets limits on the amount of wages that can be deferred. These limits are tied to inflation statistics, which are recalculated each fall for the following calendar year. If your payroll software contains annual deferral limits, be sure to update this information in January.

Thank you, employers, for partnering with Ohio DC in helping your employees be better prepared for retirement!

 
Chess.jpg