Hot Topics Plan Limits
Plan Limits
Cost of Living Adjustments (COLA)
Plan Limits Chart
| IRS LIMITS | 2011 | 2010 | |
|---|---|---|---|
| 415(c) Annual Additions Limit | $50,000 | $49,000 | $49,000 |
| Annual Compensation Limit | $250,000 | $245,000 | $245,000 |
| 401(k) & 403(b) Plan Deferrals | $17,000 | $16,500 | $16,500 |
| Catch-Up Contribution Limit | $5,500 | $5,500 | $5,500 |
| Highly Compensated Employee Compensation | $115,000 | $110,000 | $110,000 |
| Compensation Defining Key Employee (1% Owner) | $150,000 | $150,000 | $150,000 |
| Compensation Defining Key Employee (Officer) | $165,000 | $160,000 | $160,000 |
| Social Security Taxable Wage Base | $110,100 | $106,800 | $106,800 |
Officer
Is any employee that had the responsibilities and authority of a corporate officer at any time during the plan year (i.e.: president, treasurer).
Ownership
An employee owning a percentage of the outstanding stock, capital interest or voting power during the current or past plan year. A spouse, linear ascendants and descendants of owners are considered to own the same percentage and will be a Key/HCE as well.
HCE - Highly Compensated Employees
Any employee who owns greater than 5% of the outstanding stock, capital interest or voting power at anytime during the plan year is an HCE, regardless of his/her salary. Non-owners (5% or less) earning $110,000 or more in 2009 are also considered to be an HCE.
Key Employees
Employees will be considered Key if they satisfy one of the following: 1) A 1% owner making greater than $160,000 in the current plan year; 2) any officer who made greater than $160,000 in the current plan year; or 3) any employee who owns greater than 5% of the outstanding stock, capital interest or voting power at any time during the plan year.
Family
The spouse and linear ascendants and descendants (son, father, grandfather) will also be considered HCE and/or Key for testing purposes.
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