Maximum Benefit and Contributions Limits for 2004-2009
As published by the Internal Revenue Service.
 

2009

2008

2007

2006

2005

2004

401(a)(17)/
404(l) Annual
Compensation
$245,000 $230,000 $225,000 $220,000 $210,000 $205,000
402(g)(1)
Elective
Deferrals
16,500 15,500 15,500 15,000 14,000 13,000
408(k)(2)(C)
SEP Minimum
Compensation
550 500 500 450 450 450
408(k)(3)(C)
SEP Maximum
Compensation
245,000 230,000 225,000 220,000 210,000 205,000
408(p)(2)(E)
SIMPLE
Maximum
Contributions
11,500 10,500 10,500 10,000 10,000 9,000
414(q)(1)(B)
HCE
Threshold
110,000 105,000 100,000 100,000 95,000 90,000
414(v)(2)(B)(i)
Catch-up
Contributions
5,500 5,000 5,000 5,000 4,000 3,000
414(v)(2)(B)(ii)
Catch-up
Contributions
2,500 2,500 2,500 2,500 2,000 1,500
415(b)(1)(A)
DB Limits
195,000 185,000 180,000 175,000 170,000 165,000
415(c)(1)(A)
DC Limits
49,000 46,000 45,000 44,000 42,000 41,000
416(i)(1)(A)(i)
Key EE
160,000 150,000 145,000 140,000 135,000 130,000
457(e)(15)
Deferral Limits
16,500 15,500 15,500 15,000 14,000 13,000

The Elective Deferral Limit is the maximum contribution that can be made on a pre-tax basis to a 401(k) or 403(b) plan (Internal Revenue Code section 402(g)

The 457 Deferral Limit is a similar restriction, applied to certain government plans (457 plans).

The Annual Benefit Limit is the maximum annual benefit that can be paid to a participant (IRC section 415). The limit applied is actually the lesser of the dollar limit above or 100% of the participant's average compensation (generally the high three consecutive years of service). The participant compensation level is also subjected to the Annual Compensation Limit noted above.

The Annual Contribution Limit is the maximum annual contribution amount that can be made to a participant's account (IRC section 415). This limit is actually expressed as the lesser of the dollar limit or 100% of the participant's compensation, applied to the combination of employee contributions, employer contributions and forfeitures allocated to a participant's account.

In calculating contribution allocations, a plan cannot consider any employee compensation in excess of the Annual Compensation Limit (401(a)(17)). This limit is also imposed in determining the Annual Benefit Limit (above). In calculating certain nondiscrimination tests (such as the Actual Deferral Percentage), all participant compensation is limited to this amount, for purposes of the calculation.

The Highly Compensated Threshold (section 414(q)(1)(B)) is the minimum compensation level established to determine highly compensated employees for purposes of nondiscrimination testing. The compensation threshold is based on the year in which the preceding plan year begins.

The SIMPLE Contribution Limit is the maximum annual contribution that can be made to a SIMPLE (Savings Incentive Match Plan for Employees) plan. SIMPLE plans are simplified retirement plans for small businesses that allow employees to make elective contributions, while requiring employers to make matching or nonelective contributions.

SEP Coverage Limit is the minimum earnings level for a self-employed individual to qualify for coverage by a Simplified Employee Pension plan (a special individual retirement account to which the employer makes direct tax-deductible contributions.

The SEP Compensation Limit is applied in determining the maximum contributions made to the plan.

Catch up Contributions, SIMPLE "Catch up" deferral: Under the Economic Growth and Tax Relief Act of 2001 (EGTRRA), certain individuals aged 50 or over can now make so-called 'catch up' contributions, in addition to the above limits.

EGTRRA also added the Top-heavy plan key employee compensation limit.

 

 

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