Pension Plan Limits For The Tax Years 2002 - 2008

On October 18, 2007, the Internal Revenue Service announced cost of living adjustments applicable to dollar limitations for pension plans and other items for Tax Year 2008.

Section 415 of the Internal Revenue Code provides for dollar limitations on benefits and contributions under qualified retirement plans. It also requires that the Commissioner annually adjust these limits for cost of living increases.

Many of the pension plan limitations will change for 2008 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment. However, for others, the limitation will remain unchanged. For example, the limitation under Section 402(g)(1) on the exclusion for elective deferrals described in Section 402(g)(3) remains unchanged at $15,500. This limitation affects elective deferrals to Section 401(k) plans and to the Federal Government’s Thrift Savings Plan, among other plans.

401k Plan Limits for Plan Year 2008 2007 2006 2005 2004 2003 2002
401k Elective Deferrals  $15,500 $15,500 $15,000 $14,000 $13,000 $12,000 $11,000
Annual Defined Contribution Limit $46,000 $45,000 $44,000 $42,000 $41,000 $40,000 $40,000
Annual Compensation Limit $230,000 $225,000 $220,000 $210,000 $205,000 $200,000 $200,000
Catch-Up Contribution Limit $5,000 $5,000 $5,000 $4,000 $3,000 $2,000 $1,000
Highly Compensated Employees  $105,000 $100,000 $100,000 $95,000 $90,000 $90,000 $90,000
 
NON 401K RELATED LIMITS
403(b)/457 Elective Deferrals  $15,500 $15,500 $15,000 $14,000 $13,000 $12,000 $11,000
SIMPLE Employee Deferrals $10,500 $10,500 $10,000 $10,000 $9,000 $8,000 $7,000
SIMPLE Catch-Up Deferral $2,500 $2,500 $2,500 $2,000 $1,500 $1,000 $500
SEP Minimum Compensation $500 $500 $450 $450 $450 $450 $450
SEP Annual Compensation Limit $230,000 $225,000 $220,000 $210,000 $205,000 $200,000 $200,000
Social Security Wage Base 102,000 $97,500 $94,200 $90,000 $87,900 $87,000 $84,900

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