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”.