News
The IRS has announced no changes for the dollar limitations for pension plans and other items applicable to tax year 2010. While there was speculation about whether any of the dollar limits actually would decrease for 2010, since the COL index for the quarter ended September 30, 2009, is less than that of the quarter ended September 30, 2008. However, the IRS interpreted the applicable statutory provision (Code §415(d)) to mean that any decline in the applicable index cannot result in a reduced limitation.
Here are the limits for the 2010 tax year:
Elective deferrals: 401(k), SARSEP, 403(b), 457:$16,500
“Catch-up" limit: 401(k), SARSEP, 403(b), 457: $5,500
SIMPLE plan deferrals: $11,500
SIMPLE “Catch-up" limit: $2,500
Highly Compensated Employee (HCE) definition: $110,000
Top-heavy key employee officer compensation limit: $160,000
Defined benefit 415 limitation: $195,000
Defined contribution 415 limitation: $49,000
Qualified plan/SEP compensation limit: $245,000