The I.R.S. has recently issued its annual cost-of-living adjustments applicable in 2011 to qualified retirement (pension, profit-sharing, § 401(k), money purchase and stock bonus) plans. Generally, there has been such a low rate of inflation in the nation’s economy that many of these cost-of-living adjustments will remain unchanged.
In 2011, the maximum amount of annual compensation which may be considered for any single employee participating in such a retirement plan remains unchanged at $245,000. The aggregate annual limit on employer and employee contributions to a retirement plan on behalf of a single employee likewise remains unchanged in 2011 at a level of $49,000 for defined contribution (profit-sharing, § 401(k) and money purchase) plans. Further, the maximum annual benefit which may be funded under a defined benefit pension plan (based on actuarial computations) remains unchanged in 2011 at a level of $195,000.
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