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2008 maximum limitations for retirement plans
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Limitations for Retirement Plans
October 18th, 2007:
The IRS announced cost-of-living adjustments to the maximum dollar
limits allowed in pension plans. This chart lists these changes.
Some of these changes are controlled by the increase in the cost-of-living
index, several of the limitations are scheduled increases set by
the Economic Growth and Tax Relief Reconciliation
Act of 2001.
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2007 |
2008 |
| Defined Benefit Pension Benefits |
|
|
| Defined Benefit Maximum Annual Benefit |
$180,000 |
$185,000 |
| |
|
|
| Defined Contribution Allocations |
|
|
| Defined Contribution Maximum Allocations |
$45,000 |
$46,000 |
| |
|
|
| Deferrals |
|
|
| Maximum Deferrals for 401(k) or 403(b) |
$15,500 |
$15,500 |
| Maximum Catch-up Contributions for 401(k) or 403(b) |
$2,500 |
$2,500 |
| Maximum Deferrals for SIMPLE |
$10,500 |
$10,500 |
| Maximum Catch-up Contributions for SIMPLE |
$5,000 |
$5,000 |
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|
|
| IRA |
|
|
| Maximum IRA Contribution for individuals 49 and below |
$4,000 |
$5,000 |
| Maximum IRA Contribution for individuals 50 and above |
$5,000 |
$6,000 |
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|
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| Salaries |
|
|
| Maximum Annual Salary for Pension Plans |
$225,000 |
$230,000 |
| Salary to Determine Highly Compensated Employee |
$100,000 |
$105,000 |
| Salary to Determine Key Employee |
$145,000 |
$150,000 |
| Salary for SEP Eligibility |
$500 |
$500 |
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|
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| Social Security Taxable Wage Base |
|
|
| Taxable Wage Base |
$97,500 |
$102,000 |
Source:
Internal Revenue Service
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