As they do every year, the Internal Revenue Service increased the dollar limits (adjusted for cost-of-living increases) that apply to qualified retirement plans. There are three separate charts below that list the limits that have changed for 2009. The three charts are separated to identify the revised limits for: (1) defined contribution plans, (2) defined benefit plans, and (3) both defined contribution and defined benefit plans.
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Defined Contribution PLAN Limits |
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Description of Dollar Limit |
2008 |
2009 |
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Limit on Employee Elective Deferrals (the “402(g)” limit) |
$15,500 |
$16,500 |
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Limit on Catch-Up Contributions (414(v)) |
$5,000 |
$5,500 |
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Limit on total contributions made to an employee’s account under a defined contribution limit (the “415(c)” limit) |
$46,000 |
$49,000 |
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Limit on total ESOP account balance subject to 5 year distribution period (409(o)) |
$935,000 |
$985,000 |
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Defined BENEFIT PLAN Limits |
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Description of Dollar Limit |
2008 |
2009 |
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Limit on annual benefit payable under a defined benefit plan (the “415(b)” limit) |
$185,000 |
$195,000 |
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Limits APPLICABLE TO ALL QUALIFIED RETIREMENT PLANS |
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Description of Dollar Limit |
2008 |
2009 |
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401(a)(17) limit on total compensation that may be taken into account under a qualified retirement plan |
$230,000 |
$245,000 |
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Highly compensated employee threshold |
$105,000 |
$110,000 |
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Key employee threshold |
$150,000 |
$160,000 |
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Taxable wage base |
$102,000 |
$106,800 |
If you have any questions regarding these increased limits or any other employee benefit questions or concerns, please contact Jonathan Grossman at jgrossman@tuckerlaw.com.
