As they do every year, the Internal Revenue Service released the dollar limits that apply to qualified retirement plans. There are three separate charts below that list the limits for 2010. The three charts are separated to identify the limits for: (1) defined contribution plans, (2) defined benefit plans, and (3) both defined contribution and defined benefit plans. 

Defined Contribution PLAN Limits

Description of Dollar Limit

2009

2010

Limit on Employee Elective Deferrals (the “402(g)” limit)

$16,500

$16,500

Limit on Catch-Up Contributions (414(v))

$5,500

$5,500

Limit on total contributions made to an employee’s account under a defined contribution limit (the “415(c)” limit)

$49,000

$49,000

Limit on total ESOP account balance subject to 5 year distribution period (409(o))

$985,000

$985,000

 

Defined BENEFIT PLAN Limits

Description of Dollar Limit

2009

2010

Limit on annual benefit payable under a defined benefit plan (the “415(b)” limit)

$195,000

$195,000

     

Limits APPLICABLE TO ALL QUALIFIED RETIREMENT PLANS

Description of Dollar Limit

2009

2010

401(a)(17) limit on total compensation that may be taken into account under a qualified retirement plan

$245,000

$245,000

Highly compensated employee threshold

$110,000

$110,000

Key employee threshold

$160,000

$160,000

Taxable wage base

$106,800

$106,800

If you have any questions regarding these limits or any other employee benefit questions or concerns, please contact Jonathan Grossman at jgrossman@tuckerlaw.com.