The IRS recently announced their cost of living adjustments (COLA) for pension plans and other retirement accounts for tax year 2011.
Unfortunately, there were no adjustments made for the 2011 contribution limits of IRAs, 401 (k)’s, or 403 (b)’s. Therefore, Roth IRA contribution limits, Traditional IRA contribution limits, 401k contribution limits, and 403b contribution limits will all remain the same as this year.
Below is a chart of the contribution limits for each of these accounts. Click here to see a full list of retirement account contributions
[spreadsheet https://spreadsheets.google.com/pub?key=0Aocw3pSH3wbXdEgteG5KWVlLcGlJQlpzbURkckJ4aXc&hl=en&single=true&gid=0&output=html 450 300]
Anyone who will be 50 years of age or older by the end of 2011 will be able to make the “catch-up” contributions as well. Therefore, you will have a chance to make up for lost time when it comes to your retirement planning.
Don’t forget that you still have time to increase your 2010 tax return by contributing to these accounts before the deadline. In fact, you have until April 18, 2011 to make a contribution to a Traditional IRA and have it count against your 2010 taxes! Even if you don’t have any income, you should look into a work at home moms and dads spousal IRA.
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