2012 Social Security wage base and 401(K) contribution limits

For 2012 the maximum amount of earnings subject to Social Security taxes has been increased to $110,100, up from 106,800 in 2011.  If you have a sole proprietorship or are an active partner in a partnership then you may need to adjust your estimated tax payments for 2012 to cover this increase.

The Maximum contribution for a 401(k) plan in 2012 is increased to 17,000, up from 16,500 in 2011.  If you are over 50, you can make an additional $5,500 catch up contribuiton to the plan.

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