This article was last updated on July 22
[Update] You can now see the most up-to-date 401K/403b, IRA and Roth IRA limits here
The IRS has released the latest 401k, 403b, IRA and other retirement/thrift plan contribution and income limits. With COLA remaining unchanged again this year, 2011 plan limits have also remained largely unchanged for the third year in a row. Income thresholds have marginally increased over last year.
Here is a summary of the main changes with links to more detailed articles:
401(k), 403(b), or 457(b) Plans
– The elective deferral (contribution) limit for employees who participate in employer sponsored 401k, 403b, or 457b plans, and the federal government’s Thrift Savings Plan remains unchanged at $16,500.
– The catch-up contribution limit under those plans for those aged 50 and over remains unchanged at $5,500, making the total contribution maximum for those in this age group $22,000.
See 2011 vs 2010 401K, 403b Contribution Limits and Rules for more details
– The tax 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 for claiming a tax deduction on contributions in 2011 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 contribution tax deduction in 2011 is phased out if the couple’s income is between $169,000 and $179,000, up from $167,000 and $177,000.
See this article for more IRA plan rules and contribution limits
– 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.
See this article for more on Roth IRA contribution and conversion rules
– The AGI limit for the saver’s 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.
– The limitation regarding SIMPLE retirement accounts remains unchanged at $11,500.
Official source : IRS.gov