10.21.2009

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Updates

The IRS announced the Year 2010 cost-of-living adjustments for various provisions affecting employee benefit plans.  The following table shows certain Year 2010 limits plus those from prior years.  The IRS publication with a complete list of 2010 limits can be found at http://www.irs.gov

Plan Limits 2010  2009  2008  2007  2006 
§ 401(k) Plan and 403(b) Plan  16,500  16,500  15,500  15,500  15,000 
401(k), 403(b) and 457 Catch-Up Contributions 5,500 5,500 5,000 5,000 5,000
SIMPLE Plan 11,500 11,500 10,500 10,500 10,000
SIMPLE 401(k) and IRA Catch-Up Contributions 2,500 2,500 2,500 2,500 2,500

§ 415 Limit for

  • Defined Contribution Plan (§ 415(c))
  • Defined Benefit Plan (§ 415(b))

49,000
195,000

49,000
195,000

46,000
185,000

45,000
180,000

44,000
175,000

Highly Compensated Employees (§ 414(q)) 110,000 110,000 105,000 100,000 100,000
Includible Compensation (§ 401(a)(17)) 245,000 245,000 230,000 225,000 220,000

Key Employees (§ 416)

  • Officer Group

160,000

160,000

150,000

145,000

140,000

Compensation Threshold for SEP Eligibility
(§ 408(k)(2)(C))

550

550

500

500

450

FICA Taxable Wage Base          
Social Security (Tax Rate 6.20%) 106,800 106,800 102,000 97,500 94,200
Medicare (Tax Rate 1.45%) No Limit No Limit No Limit No Limit No Limit