IRS Announcement. The IRS has announced that there will be no cost-of-living adjustments for retirement plan dollar limits for 2010, nor will there be an increase in the Social Security taxable wage base. The 2010 limits are as follows:
|
Limit |
2008 |
2009 |
2010 |
| Section 402(g) limit for 401(k) pre-tax contributions |
$15,500 |
$16,500 |
$16,500 |
| Section 414(v) catch-up contribution limit |
$5,000 |
$5,500 |
$5,500 |
| Section 401(a)(17) limit on annual compensation recognizable for retirement plan purposes |
$230,000 |
$245,000 |
$245,000 |
| Annual pre-tax contribution rate for participants at the compensation limit to reach the Section 402(g) contribution limit |
6.74% |
6.73% |
6.73% |
| Section 415 limit on annual additions to a defined contribution plan |
$46,000 |
$49,000 |
$49,000 |
| Section 415 limit on annual benefits under a defined benefit plan |
$185,000 |
$195,000 |
$195,000 |
| Compensation threshold for defining “Highly Compensated Employees” |
$100,000 |
$105,000 |
$110,0001 |
| Compensation threshold for officers to be “Key Employees”2 |
$150,000 |
$160,000 |
$160,000 |
| Social Security (OASDI) Wage Base |
$102,000 |
$106,800 |
$106,800 |
1 An employee with compensation exceeding $110,000 in 2010 will be an HCE in 2011.
2 5% owners and 1% owners with compensation exceeding $150,000 are also key employees.
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