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Pension Plan Limits for 2011

The IRS has announced the 2011 cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items.

401(k), 403(b), and 457(b) plans all have limits unchanged at $16,500. The catch-up provision for those 50 and older is also unchanged at $5,500.

The single and head of household phaseout for traditional IRA deductability is unchanged at $56,000-$66,000 and for married filing joint, it goes up slightly to $90,000-$110,000. The IRA deposit itself is still at $5,000 or $6000 for those 50 and over.

The Roth IRA phaseout 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.

Last, the Social Security Wage Base remains at $106,800. If you are fortunate enough to make more than this, income above this amount is not subject to the FICA withholding (but is subject to Medicare withholding which has no limit.


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