DOLLAR LIMITS FOR QUALIFIED PLANS
The Internal Revenue Service has announced that the qualified plan dollar limitations for 2010 will remain unchanged from 2009. The chart below lists the dollar limits for 2010 and the four prior years.
BENEFIT PLAN DOLLAR LIMITS
Adjusted for Cost-of-Living Increases
| |
2006 |
2007 |
2008 |
2009 |
2010 |
| Calendar year limit for pre-tax contributions to 401(k) or 403(b) plans |
$15,000 |
$15,500 |
$15,500 |
$16,500 |
$16,500 |
Annual limit on compensation
|
$220,000 |
$225,000 |
$230,000 |
$245,000 |
$245,000 |
Taxable Wage Base for
FICA taxes:
• Social Security
• Medicare
|
$94,200
unlimited |
$97,500
unlimited |
$102,000
unlimited |
$106,800
unlimited |
$106,800
unlimited |
Section 415 limits:
• defined benefit plans
• defined contribution plans |
$175,000
$44,000 |
$180,000
$45,000 |
$185,000
$46,000 |
$195,000
$49,000 |
$195,000
$49,000 |
| Threshold for identifying highly compensated employees |
$100,000* |
$100,000* |
$105,000* |
$110,000* |
$110,000* |
| Catch-up contribution dollar limit (for individuals age 50 or older) |
$5,000 |
$5,000 |
$5,000 |
$5,500 |
$5,500 |
* Based on compensation paid in the prior year.
Contact Us
If you have any questions about applying these dollar limits to your plans, please contact a member of Oppenheimer's Employee Benefits Group.
This alert is a copyrighted publication produced by Oppenheimer Wolff & Donnelly LLP. The information contained in this alert is of a general nature and is subject to change. Readers should not act without further inquiry and/or consultation with legal counsel.