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IRS Retirement Plan Limits for 2011

Section 415 of the Internal Revenue Code provides for dollar limitations on benefits and contributions under qualified retirement plans.

The annual compensation limit under Sections 401(a)(17), 404(l), 408(k)(3)(C), and 408(k)(6)(D)(ii) remained unchanged at $245,000.
Retirement Plan Contribution Limits 2011 2010 2009
Under Age 50 Over Age 50 Under Age 50 Over Age 50 Under Age 50 Over Age 50
IRA Contributions 5,000 6,000 5,000 6,000 5,000 6,000
Simple IRA 11,500 14,000 11,500 14,000 11,500 14,000
401(k)/403(b) 16,500 22,000 16,500 22,000 16,500 22,000
Profit Sharing-per Participant 49,000 49,000 49,000 49,000 49,000 49,000

The dollar limitation under Section 416(i)(1)(A)(i) concerning the definition of key employee in a top-heavy plan remained unchanged at $160,000.

The dollar amount under Section 409(o)(1)(C)(ii) for determining the maximum account balance in an employee stock ownership plan subject to a 5 year distribution period remained unchanged at $985,000, while the dollar amount used to determine the lengthening of the 5 year distribution period remained unchanged at $195,000.

The limitation used in the definition of highly compensated employee under Section 414(q)(1)(B) remained unchanged at $110,000.

The dollar limitation under Section 414(v)(2)(B)(i) for catch-up contributions to an applicable employer plan other than a plan described in Section 401(k)(11) or Section 408(p) for individuals aged 50 or over remained unchanged at $5,500.

The dollar limitation under Section 414(v)(2)(B)(ii) for catch-up contributions to an applicable employer plan described in Section 401(k)(11) or Section 408(p) for individuals aged 50 or over remained unchanged at $2,500.

The compensation amount under Section 408(k)(2)(C) regarding simplified employee pensions (SEPs) remained unchanged at $550.

The compensation amounts under Section 1.61 21(f)(5)(i) of the Income Tax Regulations concerning the definition of "control employee" for fringe benefit valuation purposes remained unchanged at $95,000.

The compensation amount under Section 1.61 21(f)(5)(iii) remained unchanged at $195,000.

The limitation under Section 408(p)(2)(E) regarding SIMPLE retirement accounts remained unchanged at $11,500.

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