E-Alert
November 11, 2010
Retirement Plan Limitation for 2011
The IRS announced its retirement plan limitations for 2011. Most limits remain unchanged from 2010. The most significant changes are:
- Annual 401(k) contributions are limited to $16,500 (per individual per calendar year, aggregating all employers' salary-deferral-funded retirement plans).
- An additional 401(k) "catch-up" contribution of $5,500 may be made for individuals who are at least 50 by December 31, 2011, for a total of $22,000.
- Under a "defined contribution" (e.g. 401(k) or profit sharing) plan, total contributions for an individual are limited to $49,000 ($54,000 if the above "catch-up" 401(k) contribution is made).
- The maximum compensation that may be considered for contributions or benefits is $245,000.
- The maximum annual benefit that may be funded for an individual under a "defined benefit" (including "cash balance") plan is $195,000.
If you feel that you are not benefiting optimally under your current retirement arrangement, please contact us.
If you have any questions regarding the information in this article, or have any other issues you would like to discuss, please feel free to contact the DZH Phillips tax department at 415.781.2500 or email cpas@dzhphillips.com.
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