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IRS Announces Pension Plan Limitations for 2011

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Jaxine L. Wintjen, CP
Foster Swift Employment, Labor & Benefits E-News
November 9, 2010

The IRS has announced the cost-of-living adjustments applicable to pension plan limitations for 2011. While the cost-of-living index for the quarter ended September 30, 2010 is greater than the cost-of-living index for the quarter ended September 30, 2009; it is less than the cost-of-living index for the quarter ended September 30, 2008. Therefore, the limits remain unchanged from the 2010 levels. The chart below sets forth the applicable limitations.

Employee Plan COLA

2010 Limit

2011 Limit

401(k) and 403(b) Employee Contribution Limit 

$16,500

$16,500

"Catch-Up Contribution" Limit

$5,500

$5,500

Defined Contribution Maximum

$49,000 (plus "Catch-Up")

$49,000 (plus "Catch-Up")

Highly Compensated Employee

$110,000 (look back year compensation)

$110,000 (look back year compensation)

Annual Compensation Limit

$245,000

$245,000

457 Plan Contribution Limit

$16,500

$16,500

Social Security Wage Base

$106,800

$106,800

Please contact your Foster Swift employee benefits professional if you have any questions regarding these limits.