Edward T. Hill, AIF®
Director of Corporate
Retirement Plan Consulting
Resources
Annual Plan Limits
IRS Cost of Living Adjustments
| 2009-2010 | 2008 | 2007 | 2006 | 2005 | |
|---|---|---|---|---|---|
| Maximum Annual Considered Compensation: | $245,000 | $230,000 | $225,000 | $220,000 | $210,000 |
| Limits on benefits and contributions: | |||||
| Defined contribution plans maximum | $49,000 | $46,000 | $45,000 | $44,000 | $42,000 |
| Defined benefit plans maximum | $195,000 | $185,000 | $180,000 | $175,000 | $170,000 |
| 401(k), 403(b) and 457(b) plan maximum elective deferrals | $16,500 | $15,500 | $15,500 | $15,000 | $14,000 |
| SIMPLE plan maximum elective deferrals | $11,500 | $10,500 | $10,500 | $10,000 | $10,000 |
| IRA maximum | $5,000 | $5,000 | $4,000 | $4,000 | $4,000 |
| Catch-up contributions: | |||||
| 401(k) and 403(b) plans | $5,500 | $5,000 | $5,000 | $5,000 | $4,000 |
| SIMPLE plans | $2,500 | $2,500 | $2,500 | $2,500 | $2,000 |
| IRA | $1,000 | $1,000 | $1,000 | $1,000 | $500 |
| "Highly Compensated Employee" threshold: | $110,000 | $105,000 | $100,000 | $100,000 | $95,000 |
| "Key Employee" definition: | |||||
| Officer compensation threshold | $160,000 | $150,000 | $145,000 | $140,000 | $135,000 |
| 1% owner compensation threshold | $160,000 | $150,000 | $150,000 | $150,000 | $150,000 |
| Social Security: | |||||
| Taxable wage base | $106,800 | $102,000 | $97,500 | $94,200 | $90,000 |