On October 16, 2008, the Internal Revenue Service announced the 2009 cost-of-living adjustments (COLAs) to dollar limitations applicable to retirement plans. The following is a chart comparing the 2008 and new 2009 limits:
|
2008 |
2009 |
|
|
Defined Contribution Plan Dollar Limit IRC § 415(c)(1)(A) |
$46,000 |
$49,000 |
|
Elective Deferral Limit 401(k)/403(b) IRC § 402(g)(1) |
$15,500 |
$16,500 |
|
"Catch-Up" Limit 401(k) IRC § 414(v)(2)(B)(i) |
$5,000 |
$5,500 |
|
Annual Compensation Limit IRC §§ 401(a)(17), 404(l), 408(k)(3)(C) |
$230,000 |
$245,000 |
|
HCE Compensation IRC § 414(q)(1)(B) |
$105,000 |
$110,000 |
|
Key Employee Officer Compensation IRC § 416(i)(1)(A)(i) |
$150,000 |
$160,000 |
|
SEP Minimum Compensation IRC § 408(k)(2)(C) |
$500 |
$550 |
|
SIMPLE Employee Deferral Limit IRC § 408(p)(2)(E) |
$10,500 |
$11,500 |
|
SIMPLE "Catch-Up" Deferral Limit IRC § 414(v)(2)(B)(ii) |
$2,500 |
$2,500 |
|
Maximum ESOP Balance (5 Year Rule) IRC § 409(o)(1)(C)(ii) |
$935,000 |
$985,000 |
|
Additional Amount - ESOP 5 Year Rule IRC § 409(o)(1)(C)(ii) |
$185,000 |
$195,000 |
|
Social Security Taxable Wage Base IRC § 3121(a) |
$102,000 |
$106,800 |
This article is presented for informational purposes only and is not intended to constitute legal advice.