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| Retirement plan provisions | Limit for 2010 | Limit for 2011 |
|---|---|---|
| Maximum annual dollar benefit for a defined benefit plan | $195,000 | $195,000 |
| Maximum dollar limit on additions to a defined contribution plan | $49,000 | $49,000 |
| Maximum amount of compensation taken into account for qualified retirement plans | $245,000 | $245,000 |
| Dollar limit for definition of “key employee” in top-heavy retirement plan | $160,000 | $160,000 |
| Dollar limit for definition of “highly compensated employee” in qualified plan | $110,000 | $110,000 |
| Dollar limit for elective deferrals to a 401(k) plan | $16,500 | $16,500 |
| Dollar limit for contributions to a Savings Incentive Match Plan for Employees (SIMPLE) | $11,500 | $11,500 |
| Dollar limit for elective deferrals to deferred compensation plans of state and local governments and tax-exempt organizations | $16,500 | $16,500 |
| Dollar limit for catch-up contributions to a SIMPLE plan | $2,500 | $2,500 |
| Dollar limit for catch-up contributions to a 401(k), 403(b), 457 or Simplified Employee Pension (SEP) plan | $5,500 | $5,500 |
However, the limits for certain IRA thresholds were bumped up slightly for 2011, as shown in the chart below.
| IRA thresholds | Limit for 2011 | Limit for 2010 |
|---|---|---|
| Phaseout of traditional IRA deduction for single filers | $56,000–$66,000 of AGI | $56,000–$66,000 of AGI |
| Phaseout of traditional IRA deduction for joint filers | $89,000–$109,000 of AGI | $90,000–$110,000 of AGI |
| Phaseout of contributions for traditional IRA if one spouse has employer plan | $167,000–$177,000 of AGI | $169,000–$179,000 of AGI |
| Phaseout of contributions to Roth IRAs for single filers | $105,000–$120,000 of AGI | $107,000–$122,000 of AGI |
| Phaseout of contributions to Roth IRAs for joint filers | $167,000–$177,000 of AGI | $169,000–$179,000 of AGI |
Other articles in the February 2011 Edition of Business Matters: