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-   -   401k and IRA predictions for 2011? (http://www.early-retirement.org/forums/f28/401k-and-ira-predictions-for-2011-a-51822.html)

Andre1969 08-26-2010 10:55 AM

401k and IRA predictions for 2011?
 
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! 08-26-2010 11:09 AM

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

ziggy29 08-26-2010 11:20 AM

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 08-26-2010 11:25 AM

I too vote for no change at all.

Andre1969 08-26-2010 12:02 PM

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 08-26-2010 12:03 PM

Quote:

Originally Posted by Andre1969 (Post 972246)
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...


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