IRS Limits for 2011 Stays Unchanged

IRS Limits for 2011 Remain Unchanged

The IRS has announced retirement plan and other limits for 2011.  Most limits will remain the same for 2011 as there is no Cost of Living Adjustment (COLA).

Commonly used limits for employers:

Employee Deferral Limit for 401k/403b Plans $16,500 (same as 2010)
Defined Contribution Limit (Total for employee plus employer contributions) $49,000 or 100% of compensation if less (same as 2010)
Age 50+ Catch-up Contribution Limit for 401k/403b Plans $5500 (same as 2010)
Annual Compensation Limit (for benefit calculations) $245,000 (same as 2010)
Employee Deferral Limit for SIMPLE Plans $11,500 (same as 2010)
Age 50+ Catch-up Contribution Limit for SIMPLE plans $2500 (same as 2010)
Highly Compensated Employee (HCE) Definition $110,000 (same as 2010)
Social Security Taxable Wage Base $106,800 (same as 2010)

The 2011 mileage reimbursement rate for business purposes has not yet been announced.  Currently it is $0.50 per mile.


Health Savings Accounts/High Deductible Health Plans

The IRS had already announced earlier this year that 2011 limits for HSA’s will be unchanged.  Here are the limits:

Single HSA Contribution Limit $3050
Family HSA Contribution Limit $6150
Minimum Single HDHP Deductible $1200
Minimum Family HDHP Deductible $2400
Maximum Single HDHP Out-of-pocket limit $5950
Maximum Family HDHP Out-of-pocket limit $11,900
Age 55+ Catch-up Contribution Limit $1000

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