The IRS announced the Year 2011 cost-of-living adjustments for various provisions affecting employee benefit plans. The following table shows certain Year 2011 limits and those from prior years. 2011 limits listed below remain unchanged from 2010. The IRS publication with a complete list of 2011 limits can be found at http://www.irs.gov/newsroom/article/0,,id=229975,00.html.

Plan Limits

2011

2010

2009

2008

2007

§ 401(k) Plan and § 403(b) Plan

$16,500

$16,500

$16,500

$15,500

$15,500

§§ 401(k), 403(b) and 457 Catch-Up Contributions

$5,500

$5,500

$5,500

$5,000

$5,000

SIMPLE Plan

$11,500

$11,500

$11,500

$10,500

$10,500

SIMPLE § 401(k) and IRA Catch-Up Contributions

$2,500

$2,500

$2,500

$2,500

$2,500

§ 415 Limit for
" Defined Contribution Plan (§ 415(c))
" Defined Benefit Plan (§ 415(b))

$49,000
$195,000

$49,000
$195,000

$49,000
$195,000

$46,000
$185,000

$46,000
$185,000

Highly Compensated Employees (§ 414(q))

$110,000

$110,000

$110,000

$105,000

$100,000

Includible Compensation (§ 401(a)(17))

$245,000

$245,000

$245,000

$230,000

$225,000

Key Employees (§ 416)
" Officer Group

$160,000

$160,000

$160,000

$150,000

$145,000

Compensation Threshold for SEP Eligibility
(§ 408(k)(2)(C))

$550

$550

$550

$500

$500

FICA Taxable Wage Base

          

Social Security (Tax Rate 6.20%)

$106,800

$106,800

$106,800

$102,000

$97,500

Medicare (Tax Rate 1.45%)

No limit

No limit

No limit

No limit

No limit

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.