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25
Internal Revenue Code Limit
2011
2010
401(k) plan elective deferrals
$16,500
$16,500
403(b) plan elective deferrals
$16,500
$16,500
Governmental 457(b) plan elective deferrals
$16,500
$16,500
Catch-up contribution limit 401(k), 403(b) and governmental 457(b) plans
$5,500
$5,500
SIMPLE plan elective deferrals
$11,500
$11,500
SIMPLE plan catch-up contributions
$2,500
$2,500
Defined benefit plans maximum annual annuity
$195,000
$195,000
Defined contribution plans maximum annual addition
$49,000
$49,000
Maximum annual compensation
defined benefit plans, defined contribution plans and SEPs
$245,000
$245,000
Annual compensation definition of "highly compensated employee"
$110,000
$110,000
Annual compensation "officer" for "key employee" definition
$160,000
$160,000
Simplified Employee Pension (SEP) minimum compensation
$550
$550
Tax credit ESOP
Five-year limit
$985,000
$985,000
One-year extension
$195,000
$195,000
Summary of 2011 Qualified Retirement Plan Limits
By Leonard G. Brown, FSA, MAAA, Member, CSCPA Employee Benefit Plans Special Interest Group
The IRS annually adjusts qualified retirement plan limits for increases in the cost of living. The following table summarizes
the 2011 limits as reported in IR-2010-108; all of the limits listed below remain unchanged from 2010.
Leonard G. Brown, FSA, MAAA, Pension Benefit Consultants, Inc.