The IRS recently announced that the dollar limits for qualified retirement plans (and generally for 403(b) and 457(b) plans) will remain unchanged for 2011 because the applicable cost-of-living indices have not increased.
The following is a list of some important retirement plan limits for 2011:
- The annual limit on elective deferrals to Section 401(k) plans, Section 403(b) annuity contracts and eligible Section 457 plans is $16,500.
- The annual limit for catch-up contributions for individuals age 50 and older to Section 401(k) plans, Section 403(b) annuity contracts and eligible Section 457 plans sponsored by governmental entities is $5,500.
- The limit on total compensation in § 401(a)(17) is $245,000.
- The dollar limit on aggregate annual additions to defined contribution plans is $49,000 (plus any catch up).
- The dollar limit on annual benefits in a defined benefit plan under § 415(b) (before adjustment for age and form) is $195,000.
- An individual earning more than $110,000 in 2010 will generally be a highly compensated employee in 2011.