 
|
| ALERT
2009
Retirement Benefit Plan Limits
Each
year, the IRS issues adjustments to the limits
for company pension plans, Social Security,
Medicare,
and other plans to reflect inflation, and changes
in the law. Plan sponsors and their advisors
must
annually adapt their plans to the new limits.
Following are the limits for 2005 - 2009:
|
|
|
| Retirement
plans, published by IRS |
| Annual
Compensation: |
2005 |
2006 |
2007 |
2008 |
2009 |
Basic limit |
210,000 |
220,000 |
225,000 |
230,000 |
245,000 |
| Limits
on benefits and contributions: |
|
Defined benefit plans: basic limit |
170,000 |
175,000 |
180,000 |
185,000 |
195,000 |
|
Defined contribution plans: basic limit |
42,000 |
44,000 |
45,000 |
46,000 |
49,000 |
|
401(k) 403(b) 457(b) plans, elective deferral: limit |
14,000 |
15,000 |
15,500 |
15,500 |
16,500 |
|
401 (k), 403 (b), or governmental 457 (b) plans: Catch-up |
4,000 |
5,000 |
5,000 |
5,000 |
5,500 |
| "Highly Compensated Employee" definition |
95,000 |
100,000 |
100,000 |
105,000 |
110,000 |
| "Officer" for "key employee" definition |
135,000 |
140,000 |
145,000 |
150,000 |
160,000 |
SIMPLE plans: elective deferral limit |
10,000 |
10,000 |
10,500 |
10,500 |
11,500 |
|
SIMPLE Catch-up contribution |
2,000 |
2,500 |
2,500 |
2,500 |
2,500 |
|
Simplified Employee Pension (SEP) |
450 |
450 |
500 |
500 |
550 |
|
Personal IRA/ROTH IRA |
4,000 |
4,000 |
4,000 |
4,000 |
4,000 |
|
IRA 'Catch-up' |
500 |
1,000 |
1,000 |
1,000 |
1,000 |
|
| Social
Security
|
| Payroll
taxes: |
|
Payroll tax rate,employer and employee share each |
6.20% |
6.20% |
6.20% |
6.20% |
6.20% |
|
Wage base |
$90,000 |
94,200 |
97,500 |
102,000 |
106,800 |
|
| Medicare |
|
Payroll tax rate employer and employee share each |
1.45% |
1.45% |
1.45% |
1.45% |
1.45% |
|
Wage base |
Unlimited |
|
|
|
 |
