401k and IRA predictions for 2011?

[Andre1969]

Hey gang, anybody want to take a guess on what the 401k and IRA contribution limits will be for 2011? I have a gut feeling the IRA limit will stay the same, at $5,000 (plus whatever the catch-up is), but the 401k limit might jump to $17K? At least, I'm hoping, since it didn't go up last year.

I guess we'll find out for sure in October, or whenever it is they announce the new limits.

 

[LOL!]

Aren't these indexed to COLA with minimum $500 increments? That means, no change for 2011.

 

[ziggy29]

I don't think they will change at all. With $500 increments a 3% inflation rate to see a $500 increase in the 401K limits. And even though it feels like "real" inflation in essential items exceeds 3%, the official year-over-year rate won't be close to that.

 

[FIREd]

I too vote for no change at all.

 

[Andre1969]

The IRA rate was the same for 2009 and 2010 though. So, in factoring in inflation, will they use 2010 as the base year, or 2009, I wonder?

 

[ziggy29]

The IRA rate was the same for 2009 and 2010 though. So, in factoring in inflation, will they use 2010 as the base year, or 2009, I wonder?

I think 2010's inflation (probably between 1-2%) will basically cancel out 2009's (stated) deflation. Not that my food bill or my utility bill or my health insurance premiums declined in 2009...