Contribution Limits for Retirement Plans For 2011 Tax Year Are Mostly Unchanged

The Internal Revenue Service Oct. 28 (IR-2010-108) announced cost-of-living adjustments that will affect limits on contributions to tax-deferred retirement plans and deferred compensation for the 2011 tax year.

Generally, the limits will be the same as those established for the 2010 tax year, and any inflation adjustments for the 2011 tax year will be small ones, IRS said.

The elective deferral or contribution limit for employees who participate in tax code Section 401(k), 403(b), and 457(b) plans, and the federal government’s Thrift Savings Plan will be unchanged at $16,500.

The catch-up contribution limit under those plans for ...