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Kane, PA 16735

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Annual Retirement Plan Limits
   
Description

2011

2010

2009

2008


Compensations
$  245,000
$  245,000
$  245,000
$  230,000
         
"Highly compensated" definition 110,000 110,000 110,000 105,000
         
"Key employee" definition        
  Owner 160,000 160,000 160,000 150,000
  1% owner 150,000 150,000 150,000 150,000
         
Limits on benefits and contributions:        
  Defined contribution plans 49,000 49,000 49,000 46,000
  Defined benefits plans 195,000 195,000 195,000 185,000
  401(k), 403(b) and 457 plan elective
  deferrals		 16,500 16,500 16,500 15,500
  SIMPLE plan elective deferrals 11,500 11,500 11,500 10,500
  IRA 5,000 5,000 5,000 5,000
         
Catch-up contributions:        
  401(k), 403(b) and 457 plans 5,500 5,500 5,500 5,000
  SIMPLE plans 2,500 2,500 2,500 2,500
  IRA 1,000 1,000 1,000 1,000
         
Social Security:        
  Taxable wage base 106,800 106,800 106,800 102,000
  Social Security tax rate withheld
  from employee		 4.2% 6.2% 6.2% 6.2%
  Social Security tax rate from employers 6.2% 6.2% 6.2% 6.2%
Medicare:        
  Taxable wage base unlimited unlimited unlimited unlimited
  Medicare tax rate withheld from employee 1.45% 1.45% 1.45% 1.45%
  Medicare tax rate withheld from employers  1.45% 1.45% 1.45% 1.45%
Combined Rate for Employee and Employer tax rate 13.3% 15.3% 15.3% 15.3%
         


 

  
 
Catch-up Contributions – Under the Economic Growth and Tax Relief Reconciliation Act of 2001, beginning in plan years after 2001, a plan may allow individuals who have attained age 50 by year end to make catch-up contributions. Catch-up contributions are not subject to any other contribution limits and are not taken into account in applying other contribution limits. In addition, they aren’t subject to applicable nondiscrimination rules. However, they must be available to all over age 50 participants on an equal basis.

Retirement Plans - Commencement of Benefits – Distributions generally are required to begin by April 1 of the calendar year following the later of: (1) the calendar year in which the employee attains age 70 1/2; or (2) the calendar year in which the employee retires. However, in the case of a 5% owner of the employer, distributions are required to begin no later the April 1 of the calendar year following the year in which the 5% owner attains age 70 1/2.