The IRS has announced the cost of living adjustments affecting dollar limitations for pension plans and items for tax year 2011. According to the IRS there is no inflation, for, in general, the limits either remain unchanged, or the inflation adjustments for 2011 are small
The annual contribution limits for retirement plans for 2011 are:
• $16,500 (plus an additional $5,500 if age 50 or older at the end of 2011) for 401(k) and 403(b) plans – unchanged.
• $16,500 (plus an additional $5,500 if age 50 or older at the end of 2011) for 457 Plans (Deferred Compensation for state and local government employees) – unchanged.
• $11,500 (plus an additional $2,500 if age 50 or older at the end of 2011) for SIMPLE plans – unchanged.
• $49,000 for Defined Contribution KEOGH plans – unchanged.
• $49,000 for Self-Employed SEP plans - unchanged (allowable contribution equal to 25% of net earnings of up to $245,000, which translates to 20% multiplied by the total of "net earnings from self-employment" from Schedule C, Schedule C-EZ or Form K-1 less the deduction for 50% of self-employment tax).
• The compensation limit for participation in a SEP is $550.00 - unchanged.
In addition, according to the IRS notice -
“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.
The AGI phase-out range for taxpayers making contributions to a Roth IRA is $169,000 to 179,000 for married couples filing jointly, up from $167,000 to $177,000 in 2010. For singles and heads of household, the income phase-out range is $107,000 to $122,000, up from $105,000 to $120,000. For a married individual filing a separate return who is an active participant in an employer-sponsored retirement plan, the phase-out range remains $0 to $10,000.
The AGI limit for the saver’s credit (also known as the retirement savings contributions credit) for low-and moderate-income workers is $56,500 for married couples filing jointly, up from $55,500 in 2010; $42,375 for heads of household, up from $41,625; and $28,250 for married individuals filing separately and for singles, up from $27,750.”
The annual contribution limits for retirement plans for 2011 are:
• $16,500 (plus an additional $5,500 if age 50 or older at the end of 2011) for 401(k) and 403(b) plans – unchanged.
• $16,500 (plus an additional $5,500 if age 50 or older at the end of 2011) for 457 Plans (Deferred Compensation for state and local government employees) – unchanged.
• $11,500 (plus an additional $2,500 if age 50 or older at the end of 2011) for SIMPLE plans – unchanged.
• $49,000 for Defined Contribution KEOGH plans – unchanged.
• $49,000 for Self-Employed SEP plans - unchanged (allowable contribution equal to 25% of net earnings of up to $245,000, which translates to 20% multiplied by the total of "net earnings from self-employment" from Schedule C, Schedule C-EZ or Form K-1 less the deduction for 50% of self-employment tax).
• The compensation limit for participation in a SEP is $550.00 - unchanged.
In addition, according to the IRS notice -
“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.
The AGI phase-out range for taxpayers making contributions to a Roth IRA is $169,000 to 179,000 for married couples filing jointly, up from $167,000 to $177,000 in 2010. For singles and heads of household, the income phase-out range is $107,000 to $122,000, up from $105,000 to $120,000. For a married individual filing a separate return who is an active participant in an employer-sponsored retirement plan, the phase-out range remains $0 to $10,000.
The AGI limit for the saver’s credit (also known as the retirement savings contributions credit) for low-and moderate-income workers is $56,500 for married couples filing jointly, up from $55,500 in 2010; $42,375 for heads of household, up from $41,625; and $28,250 for married individuals filing separately and for singles, up from $27,750.”
.
Some non-pension adjustments were also announced. For example:
• The 2011 limitations on the deduction of long-term care insurance premiums based on age (some small increases from the 2010 amounts) –
Age 40 or less = $340
Age 41 – 50 = $640
Age 51 – 60 = $1,270
Age 61 – 70 = $3,390
Over age 70 = $4,240
• The foreign earned income exclusion for 2011 is $92,900 – up from $91,500 for tax year 2010.
• The annual gift exclusion if $13,000 – unchanged.
No announcement has been made yet regarding the tax rate tables, Standard Deductions, Personal Exemption, and other inflation-adjusted items usually announced at this time. The IRS tells us “those items will be addressed in future guidance”.
Some non-pension adjustments were also announced. For example:
• The 2011 limitations on the deduction of long-term care insurance premiums based on age (some small increases from the 2010 amounts) –
Age 40 or less = $340
Age 41 – 50 = $640
Age 51 – 60 = $1,270
Age 61 – 70 = $3,390
Over age 70 = $4,240
• The foreign earned income exclusion for 2011 is $92,900 – up from $91,500 for tax year 2010.
• The annual gift exclusion if $13,000 – unchanged.
No announcement has been made yet regarding the tax rate tables, Standard Deductions, Personal Exemption, and other inflation-adjusted items usually announced at this time. The IRS tells us “those items will be addressed in future guidance”.
No comments:
Post a Comment