Internal Revenue Service Publishes 2011 Pension Plan Limitations

On October 28, 2010, the IRS announced cost-of-living adjustments applicable to certain dollar limitations for employee pension benefit plans for 2011. In general, the limits either remain unchanged from or reflect modest inflation adjustments over 2010:

• The annual benefit limit for defined benefit plans remains unchanged at $195,000.
• The annual addition limit for defined contribution plans remains unchanged at $49,000.
• The Section 402(g) limit with respect to the exclusion for elective deferrals to a 401(k), 403(b) or 457 plan remains unchanged at $16,500.
• The annual compensation limit under Sections 401(a)(17), 404(l), 408(k)(3)(C) and 408(k)(6)(D) remains unchanged at $245,000.