October 29, 2010
On October 29, 2010, the Internal Revenue Service and Social Security Administration announced cost of living adjustments applicable to dollar limitations for qualified retirement plans, and other limits for tax year 2011. The important limits are provided below:
Limits 2010 2011
401(k), 403(b) & 457(b) deferrals $16,500 $16,500
Catch-up 401(k), 403(b) & 457(b) $5,500 $5,500
415(c ) Limit $49,000 $49,000
Annual Compensation Limit $245,000 $245,000
HCE Compensation Limit $110,000 $110,000
Maximum Pension at Age 62 $195,000 $195,000
SIMPLE Deferrals $11,500 $11,500
SIMPLE Catch-up $2,500 $2,500
SEP Minimum Compensation $550 $550
Key Employee Limit, Officer Test $160,000 $160,000
IRAs for individuals age 49 & below $5,000 $5,000
IRAs for individuals age 50 & above $6,000 $6,000
Social Security Taxable Wage Base $106,800 $106,800
2011 limits reflect issuance of IRS News Release IR-2010-108 (October 28, 2010) and Social Security Administration News Release (October 28, 2010)
The IRS news release can be viewed at:
http://www.irs.gov/newsroom/article/0,,id=229975,00.html
The Social Security Administration news release can be viewed at:
http://www.socialsecurity.gov/pressoffice/factsheets/colafacts2011.htm