2011 Contribution limit & contribution changing limit Q's

[Hybrid93Hatch]

I have a couple questions:

1) Will the maximum contribution increase for 2011? If so, by how much?

2) What is the latest day we can change the contribution amount for a pp? Basically, some pp's I get a lot of overtime (OT) & not so much on others. I would like to take advantage of my contributions on the pp's where I am making a lot of OT. Also, is there a maximum contributions change per month or year?

Thanks for any help!

BTW: Next year I plan to do the $635 (or more if it changes) per pay period, so #2 won't even matter. But, for now it does

 

[tsptalk]

1) I haven't seen anything posted for 2011 (IRS Page still shows 2010)

2) Sorry, not sure. It may depend on a few things but I'd be guessing.

 

[Boghie]

The IRS will not come out with the 2011 limit till they know the 2010 inflation... I think it is inflation adjusted... Which, of course, brings up the question on what happens if we deflate

I looked back on my pay stubs for the affect of overtime. The extra pay did not get factored into extra contributions. However, they did take a higher percentage out in taxes:nuts:

However, if you are asking whether you can swing your percentage up when you are expecting overtime that might be a sensible maneuver. But – there has to be a but – you will have to make the change at least a week and a half before your pay day. At least in my case (DOD, paid every two weeks). I think you could test by messing with your withholdings.

 

[James48843]

I have a couple questions:

1) Will the maximum contribution increase for 2011? If so, by how much?

The IRS sets the maximum limit sometime AFTER the end of the current fiscal year. In 2008, they made the announcement of the 2009 number in the last week of October of 2008. In 2009, they made the announcement of the 2010 number in the second week of November, 2009.

I would expect they will make the announcement this year in either late October or early November. And I anticipate that the number will be flat - no increase for next year, unless something changes with inflation between now and the end of the year. I do not anticipate a decrease, but I do not anticipate an increase either this year. We'll have to wait and see what the IRS decides.

 

[terri77]

I believe we'll know the 2011 limit in October. I don't expect an increase this year.

 

[Frixxxx]

Well,

This will be getting interesting.....Do they keep the limit of $16,500 to allow people to invest and reduce taxes?

Or

Do they lower the limit to make more tax money now?

Or do they increase the limit, which will invest money into the market to support businesses that way?

Time will tell!