ALERT - 2011 Cost-of-Living Adjustments

Print PDFShare
May 25, 2011

The Internal Revenue Service and the Social Security Administration have issued the inflation-adjusted amounts which affect qualified retirement plans and Social Security benefits for the year 2011.

               

 

    2009 

    2010 

      2011

 § 401(k) / 403(b)/457 Deferral Limit

    $16,500

    $16,500

    $16,500

 SIMPLE Deferral Limit

       11,500

      11,500

       11,500

Catch-Up Contribution Limit to a
401(k), 403(b) or 457 plan

        5,500

        5,500

        5,500

Catch-Up Contribution Limit
to a SIMPLE plan

        2,500 

       2,500

        2,500

Compensation Cap1  

     245,000

    245,000

    245,000

§ 415(b) Defined Benefit
Annual Pension Limit 

     195,000

    195,000 

    195,000

§ 415(c) Defined Contribution
Annual Addition Limit 

       49,000

     49,000 

      49,000

Highly Compensated Employee - Compensation Threshold

      110,000

    110,000

    110,000

Key Employee - Compensation Threshold for Officers

      160,000

    160,000

    160,000

Social Security Wage Base

      106,800

    106,800

    106,800

          OASDI Rate

        6.20%

      6.20%

       6.20%

          Medicare Rate

        1.45%

      1.45%

      1.45%  

          FICA

        7.65%

    7.65%

      7.65%

Limit on Outside Earnings to Avoid Social Security Offset

     

          Under Full Retirement Age2

       14,160

    14,160

      14,160

          Over Full Retirement Age2

    unlimited

   unlimited

   unlimited

§132(f) Transportation Benefits

     

          Parking

          230

        230

          230

          Vanpooling/Transit Passes

          120

        230

          230

§223 Health Savings Accounts- Contribution Limits

     

          Single Coverage

       3,000

      3,050

       3,050

          Family Coverage

       5,950

      6,150

       6,150

§223 Health Savings Account-Catch-Up Contribution Limit

       1,000

      1,000

       1,000

For more information, please contact a member of Briggs and Morgan's Employee Benefits Group:

Ira S. Friedrich       612.977.8465    e-mail

Stephen A. Brunn   612.977.8453     e-mail

1The Compensation Cap for grandfathered participants in certain governmental plans is $360,000 for 2011.

 2For persons born in 1939, Full Retirement Age is age 65 and 4 months. For persons born in 1940, Full Retirement Age is age 65 and 6 months.