Announcement RE: 2009 Retirement Plan Limits | October 2008
The IRS has announced the cost of living adjustments applicable to certain limitations for retirement plans in 2009. In addition, certain other limitations are specified by the Economic Growth and Tax Relief Act of 2001 (EGTRRA).
The 2009 limits are as follows:
- 401(k) Deferrals $16,500
- 401(k) Catch-Up Contributions (1) $ 5,500
- Defined Contribution Additions $ 49,000
- Compensation Limitation $ 245,000
- Highly Compensated Employee (2) $ 110,000
- Social Security Taxable Wage Base $ 106,800
(1) An employee who is at least age 50 in 2009 may elect to defer $22,000 (the $16,500 basic limit plus the $5,500 catch-up amount).
(2) An employee with gross wages over $110,000 in the 2009 plan year will be treated as highly compensated in the next plan year – 2010.
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