The New Year is a good time to communicate to employees that the maximum annual participant contribution to 401(k) plans has increased, says one retirement plan expert.
The Internal Revenue Service announced last fall that it was raising the maximum contribution to $17,000 in 2012, up from the $16,500 limit in 2011. Additional catch-up contributions for participants age 50 or older remain at $5,500 per year, in addition to the $17,000.