Client Alert
Year 2009 Retirement Plan Cost-of-Living Adjustments
October 17, 2008
The Internal Revenue Service has announced the cost-of-living adjustments applicable to qualified retirement plans for the year 2009, and the Social Security Administration has announced its own cost-of-living adjustments for 2009. The following is a chart comparing the commonly used 2008 and 2009 year limits:
|
Type of Limit |
2008 |
2009 |
|
IRC Section 401(a)(17) – Qualified Plans –
Maximum Compensation Limit Per Person |
$230,000 |
$245,000 |
|
IRC Section 402(g)(1) – 401(k) Plans –
Maximum Elective Deferral Per Person Per Year |
$15,500 |
$16,500 |
|
IRC Section 414(q)(1)(B) – Qualified Plans –
Definition of Highly Compensated Employee |
$105,000 |
$110,000 |
|
IRC Section 414(v) – 401(k) Plans –
Maximum Catch-Up Contribution Per Person for
Persons Age 50 and Over |
$5,000 |
$5,500 |
|
IRC Section 415(b) – Defined Benefit Plans –
Maximum Annual Benefit Payable Per Person |
$185,000 |
$195,000 |
|
IRC Section 415(c) – Defined Contribution Plans –
Maximum Annual Contribution Per Person |
$46,000 |
$49,000 |
|
IRC Section 416(i)(1)(A)(i) – Qualified Plans –
Dollar Limit Used in Definition of Officer Key Employee for Purposes of Top-Heavy Testing |
$150,000 |
$160,000 |
|
Social Security Taxable Wage Base |
$102,000 |
$106,800 |
For Additional Information
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