IRS announces 2012 limits

IR-2011-103

• The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $16,500 to $17,000.
  
• The catch-up contribution limit for those aged 50 and over remains unchanged at $5,500.

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CLASS pulled from Health Care Reform

The Community Living Assistance Services and Supports (CLASS) introduced as part of the Affordable Care Act has been removed from the menu of health care reform entrees.  CLASS was supposed to be a voluntary long term care plan in which individuals would enroll either directly or through their employer. The law required the Secretary of Health and Human Services to design a plan that would be actuarially solvent for at least 75years.  In a letter dated October 19, 2012 to John A. Boehner, HHS Secretary Sebelius concluded that after 19 months of study, it couldn't be done.