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Contribution Limits Remain Unchanged in 2011

Employees saving for their retirement through Pre-Tax retirement benefits  are not getting any favors from the government this year. The contribution limits for the major employer-sponsored retirement plans:

403(b)s, 457(b)s and 401(k)s, not get an increase. That means like in 2010, the 2011 limit remains $16,500 for those under age 50.

Those who are age 50 and older get the benefit of a catch-up contribution of an additional $5,500.

While this may not seem like a big deal if you don’t max out your contribution anyway, you have to wonder why. They say there isn’t enough inflation to warrant an increase, yet everywhere we look prices are rising. Not only that, but politicians remind us regularly that as a whole we aren’t saving enough and have problems with Social Security, yet no new incentives are ever put in place to encourage people to save more.

The 15-Year Rule
Additionally there is a 15-Year Rule that can increase your yearly 403b contribution.To qualify for this additional contribution, you must have at least 15 years of service with your qualifying employer. Your additional 403b contribution under the 15 Year Rule can be as much as
$3,000.00 per year".


Type of contribution Limitations




Elective Deferrals 403(b) and 401(k) and; not including adjustments and catch-ups)


457(b)(2) and 457(c)(1) Limits (not including catch-ups)


Section 414(v) Catch-Up Deferrals to 403(b), 457(b), 401(k), or SARSEP Plans 9/


Defined Benefit Plans


Defined Contribution Plans


Annual Compensation Limit


Annual Compensation Limit for Grandfathered Participants in Governmental Plans Which Followed 401(a)(17) Limits (With Indexing) on July 1, 1993


Highly Compensated Employee ("HCEs")


Individual Retirement Accounts ("IRAs"), for individuals 49 and below


Individual Retirement Accounts ("IRAs"), for individuals 50 and above


SIMPLE Retirement Accounts


SEP Coverage


SEP Compensation


Tax Credit ESOP Maximum Balance


Amount for Lengthening of 5-Year ESOP Period


Excess Distribution Threshold


Qualified Police and Firefighters' DB Benefit Limit


Income Subject to Social Security Tax


FICA Tax for employers


FICA Tax for employees


Social Security Tax for employers


Social Security Tax for employees


Medicare Tax for employees and employers


FICA Tax for self-employed workers


Social Security Tax for self-employed workers


Medicare Tax for self-employed workers



Moti Gur is a Registered Representative with and securities offered through Financial Network Investment Corp and Cetera Adviser Networks LLC.
A registered broker/dealer, Investment advisor and member FINRA/ SIPC
3807 Wilshire Blvd, Suite 1040 Los Angeles, CA 90010 213-385-6237


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