October 28, 2010
Retirement Plan Limits for 2011 Announced
Retirement Plan Limits for 2011 Announced
On October 28, the Internal Revenue Service announced the cost-of-living adjustments that will be applied to the dollar limits in all tax-qualified retirement plans in 2011. The limits apply to calendar year plans, if you have an off-calendar plan year end, contact your plan administrator to see if there are any changes to your plan.
Defined Benefit Plan LimitsThe limitation on the annual benefit under a defined benefit plan remains unchanged at $195,000.
Defined Contribution PlanIndividual ContributionsThe limitation on contributions made on behalf of an individual to a defined contribution plan remains unchanged at $49,000. Individuals will still be limited to contributions of 100% of compensation or $49,000, whichever is less.
401(k) DeferralsThis dollar limitation on employee deferrals into 401(k) plan remains unchanged at $16,500.
This is a calendar year limit regardless of plan year end.
Catch-Up ContributionsFor individuals age 50 and over, the catch-up contribution remains unchanged at $5,500.
This is a calendar year limit regardless of plan year end.
Annual Compensation LimitsThe maximum annual compensation that may be recognized by a plan remains unchanged at $245,000.
Key EmployeesThe dollar limitation for determining whether an employee is “Key” for officers in a top-heavy plan will remain unchanged at $160,000.
Highly Compensated Employees
Defined Benefit Plan LimitsThe limitation on the annual benefit under a defined benefit plan remains unchanged at $195,000.
Defined Contribution PlanIndividual ContributionsThe limitation on contributions made on behalf of an individual to a defined contribution plan remains unchanged at $49,000. Individuals will still be limited to contributions of 100% of compensation or $49,000, whichever is less.
401(k) DeferralsThis dollar limitation on employee deferrals into 401(k) plan remains unchanged at $16,500.
This is a calendar year limit regardless of plan year end.
Catch-Up ContributionsFor individuals age 50 and over, the catch-up contribution remains unchanged at $5,500.
This is a calendar year limit regardless of plan year end.
Annual Compensation LimitsThe maximum annual compensation that may be recognized by a plan remains unchanged at $245,000.
Key EmployeesThe dollar limitation for determining whether an employee is “Key” for officers in a top-heavy plan will remain unchanged at $160,000.
Highly Compensated Employees
The dollar limitation on compensation used to determine which employees are considered highly compensated remains unchanged at $110,000. Thus, employees who earn in excess of $110,000 in the plan year beginning in 2010 will be considered highly compensated for the plan year beginning in 2011 and employees who earn in excess of $110,000 in 2011 will be considered highly compensated employees in 2012.
