Salary deferral amount for retirement has increased.

For many companies, it is open enrollment time again. IRS raised the limit for 2012. If you have been contributing the maximum to the 401K, 403b or other retirement plan, you can plan to defer more to reduce your taxable income. 

You can contribute up to $17,000. That is $500 more than last year's limit of $16,500. The catch-up limit for workers 55 years and older is the same, $5,500.

Some people only contribute to 401K up to the company's matching percentage. Think about how the amount you contribute not only lowers your taxable income, it also reduces your social security and medicare taxes. You save a lot of tax by participating to the maximum amount. 

Furthermore, the tax-deferred nature of the retirement saving such as 401K or IRA is a big tax saving tool that you cannot ignore.