Updated Cost of Living Adjustments for 2011 Issued for Your Retirement Plan Administration
The Internal Revenue Service has announced its annual cost of living adjustments (COLA) for 2011. For qualified retirement plans, most plan limits have not changed from the 2009 and 2010 limits. For example, elective deferrals are still generally limited to $16,500, and the catch-up contribution limit of $5,500 continues through 2011. The overall defined contribution annual limitation also remains at $49,000.
To assist plan sponsors, Ice Miller's 2011 COLA chart lists the cost of living adjustments to retirement plan limitations for the years 1998 through 2011. We have included the adjusted limits, as well as Pension Benefit Guaranty Corporation numbers, federal income tax amounts and Social Security and Medicare amounts for the past 14 years as a reference tool. If you would like a laminated copy of the chart, please e-mail your name and address to joella.short@icemiller.com.
If you have questions regarding the impact of these cost of living adjustments, please contact Craig Burke, Terry Mumford or your attorney in Ice Miller's Employee Benefits Group.
