401(k) and IRA Contribution Limits for 2011
In October the IRS released the contribution/savings limits for 401ks and IRAs. I like to post these numbers closer to the new year as many of us are in the process of setting our retirement savings goals in December.
Here are the 2011 IRA contribution limits and 401k contribution limits so you can start planning your 2011 contributions.
2011 Contribution Limits
The following limits apply to defined contribution plans like 401(k), 403(b) and 457(b) salary deferral plans.
2011 401(k) Maximum Contribution is unchanged at $16,500.
401(k) Catch Up Contribution for people aged 50 and over also remained unchanged at $5,500.
Overall Contribution Limit on Defined Contribution Plans: The limitation for defined contribution plans under Section 415(c)(1)(A) remains unchanged for 2011 at $49,000. This includes employer contributions like matches and profit sharing contributions
2011 IRA Contribution Limits
2011 IRA Maximum Contribution is $5,000.
2011 IRA Catch up Contribution for people 50 and over is $1,000.
Traditional IRA Deduction Limits: Taken directly from the IRS Release: “The deduction for taxpayers making contributions to a traditional IRA is phased out for singles and heads of household who are active participants in an employer-sponsored retirement plan and have modified adjusted gross incomes (AGI) between $56,000 and $66,000, unchanged from 2010.”
“For married couples filing jointly, in which the spouse who makes the IRA contribution is an active participant in an employer-sponsored retirement plan, the income phase-out range is $90,000 to $110,000, up from $89,000 to $109,000.”
“For an IRA contributor who is not an active participant in an employer-sponsored retirement plan and is married to someone who is an active participant, the deduction is phased out if the couple’s income is between $169,000 and $179,000, up from $167,000 and $177,000.”
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