The IRS and the Social Security Administration have announced the cost-of-living adjustments for various benefit plan limits for 2011. Limits affecting retirement plans are shown directly below and the limits for health and certain other fringe benefit plans are shown on the following page.

Retirement Plan Limits

Today, the Service provided updated retirement plan limits effective for the plan year that begins on or after January 1, 2011. Due to the low inflation rate in 2010, most limits did not receive their traditional cost-of-living adjustment. The 2011 limits, as well as the 2010 limits, are as follows:

2010

2011

Maximum Elective Deferrals to §401(k), §403(b), and §457(b) Plans

$16,500

$16,500

Maximum Catch-up Elective Deferrals to Plans other than SIMPLE Plans (age 50 by the end of the year)

$5,500

$5,500

Section 415 Limits
Defined Contribution Plan Annual Addition Maximum
Defined Benefit Plan Dollar Maximum
Defined Benefit Plan Compensation Multiplier – Used to determine limit
for participants who separated from service during 2010


$49,000
$195,000


$49,000
$195,000
1.0118

Annual Compensation Limit under §§401(a)(17), 404(l) and 408(k)
Special limit for Governmental Plans in effect on July 1, 1993

$245,000

$360,000

$245,000

$360,000

§414(q) Highly Compensated Employee definition

$110,000

$110,000

§416(i) Top-Heavy Compensation – Used to determine officers as key employees


$160,000


$160,000

§409(o) Maximum ESOP Account Balance Subject to 5-Year Distribution Period


$985,000


$985,000

ESOP Amount Used to Determine Extensions of the 5-Year Distribution Period


$195,000


$195,000

SIMPLE Plans
Qualified Salary Reduction Limit under §408(p)
§§401(k)(11) and 408(p) Catch-up Contributions (age 50 by end of year)


$11,500

$2,500


$11,500

$2,500

§408A Maximum Roth IRA Contribution (AGI Limit)
Married Filing Joint Return or Qualifying Widower
All other Taxpayers (other than married filing separately)


$167,000
$105,000


$169,000
$107,000

Social Security Wage Base

For calendar year 2011, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 reduces the employee portion of the Social Security tax from 6.2% to 4.2%. The employer portion of the Social Security tax remains unchanged. Further, for the second straight year, the Social Security taxable wage base remains unchanged at $106,800 in 2011.

Health and Fringe Benefit Plan Limits

The Service has also released health and fringe benefit plan adjustments effective January 1, 2011. The 2011 limits, as well as the 2010 limits, are as follows:

 

2010 2011
Health Savings Accounts – HDHP Limits (§223(c)(2)(A))
            HDHP Minimum Annual Deductible – Self Only
            HDHP Minimum Annual Deductible – Family
            HDHP Out-of-Pocket Maximum – Self Only
            HDHP Out-of-Pocket Maximum – Family

$1,200
$2,400
$5,950
$11,900

$1,200
$2,400
$5,950
$11,900
Health Savings Accounts – Maximum Contribution Limits (§223(b))
            Self Only
            Family
            Catch-Up Contributions (age 55 by the end of the year)

$3,050
$6,150
$1,000

$3,050
$6,150
$1,000
Medical Savings Accounts – Health Plan Limits (§220(c)(2)(A))
            Annual Deductible – Self Only
            Annual Deductible – Family
            Out-of-Pocket Maximum – Self Only
            Out-of-Pocket Maximum – Family

$2,000 to $3,000
$4,050 to $6,050
$4,050
$7,400

$2,050 to $3,050
$4,100 to $6,150
$4,100
$7,500
Medical Savings Accounts – Maximum Contribution Limits (§220(b)(2))
            Self Only (65% of deductible)
            Family (75% of deductible)

$1,300 to $1,950
$3,037 to $4,537

$1,300 to $1,950
$3,037 to $4,537
Transportation Fringe Benefits – Monthly Limits (§132(f)(2))
            Parking
            Transit Passes and Vanpooling (combined)

$230
$230

$230
$230
Employer Adoption Assistance Exclusion (§137)
            Maximum Gross Income Exclusion
            Modified AGI Phase-out – Start
            Modified AGI Phase-out – End


$12,170
$182,520
$222,520


$13,360
$185,210
$225,210

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