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Pension Plan Limits For The Tax Year 2004
On October 16, 2003, the IRS announced (Release No: IR-2003-122) the retirement plan limits that are effective on January 1, 2004. IRS announcement #2003-122 can be located at www.401khelpcenter.com/IRS/pr_irs_101603.html. Plan limits for the years 2000 - 2003 are also provided.
Many of the pension plan limitations will change for 2004. For most of the limitations, the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment. Furthermore, several limitations, set by the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), are scheduled to increase at the beginning of 2004.
2005 plan limits are available now by clicking here.
| 401k Plan Limits for Plan Year |
2004 |
2003 |
2002 |
2001 |
2000 |
| 401k Elective Deferrals |
$13,0001 |
$12,000 |
$11,000 |
$10,500 |
$10,500 |
| Annual Defined Contribution Limit |
$41,0002 |
$40,000 |
$40,000 |
$35,000 |
$30,000 |
| Annual Compensation Limit |
$205,000 |
$200,000 |
$200,000 |
$170,000 |
$170,000 |
| Catch-Up Contribution Limit |
$3,0003 |
$2,000 |
$1,000 |
n/a |
n/a |
| Highly Compensated Employees |
$90,000 |
$90,000 |
$90,000 |
$85,000 |
$85,000 |
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| NON 401K RELATED LIMITS |
| 403(b)/457 Elective Deferrals |
$13,000 |
$12,000 |
$11,000 |
$8,500 |
$8,000 |
| SIMPLE Employee Deferrals |
$9,000 |
$8,000 |
$7,000 |
$6,500 |
$6,000 |
| SIMPLE Catch-Up Deferral |
$1,500 |
$1,000 |
$500 |
n/a |
n/a |
| SEP Minimum Compensation |
$450 |
$450 |
$450 |
$450 |
$450 |
| SEP Annual Compensation Limit |
$205,000 |
$200,000 |
$200,000 |
$170,000 |
$170,000 |
| Social Security Wage Base |
$87,900 |
$87,000 |
$84,900 |
$80,400 |
$76,200 |
1. Will increase $1,000 each year till $15,000 in 2006, and then adjusted for inflation in $500 increments.
2. Adjusted for inflation in $1,000 increments.
3. Will increase each year by $1,000 until $5,000 in 2006, and then adjusted for inflation in $500 increments.
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