The Internal Revenue Service has announced the 2008 maximum adjustments applicable to dollar limitations on benefits from and contributions to qualified retirement plans.
|
2008 Maximum Adjustments |
2007 |
2008 |
|
IRAs |
$4,000 |
$5,000 |
|
IRA 50+ Catch-up |
$1,000 |
$1,000 |
|
SIMPLE |
$10,500 |
$10,500 |
|
SIMPLE 50+ Catch-up |
$2,500 |
$2,500 |
|
Annual compensation limit for computing certain benefits & contributions |
$225,000
|
$230,000
|
|
Maximum annual additions per participant in a defined contribution plan |
$45,000
|
$46,000
|
|
Elective deferrals (401(k), 403(b) & 457 plans) |
$15,500 |
$15,500 |
|
Elective deferrals (401(k), 403(b) & 457 plans)
50+ Catch-up |
$5,000
|
$5,000
|
|
Compensation amount used in defining highly compensated employees |
$100,000
|
$105,000
|
|
Maximum annual benefit under a defined benefit plan |
$180,000 |
$185,000 |
|
Social Security Taxable Wage Base |
$97,500 |
$102,000 |
*Note: Since Catch-up contribution could receive total allocations up to $51,000 for 2008.
Please call us if you have any questions or for more information about these adjustments.