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IMPORTANT FIGURES

RETIREMENT PLAN DOLLAR LIMITS
(these are the absolute dollar limits.  These amounts may be further limited by the actual plan document or IRC Sec 415 and IRC Sec 412 percentage limits)

LIMIT TYPE

2006 2007 2008 2009

401(k) Elective Deferral *

$15,000 $15,500 $15,500 $16,500
IRA/ROTH IRA Limits*** $4,000 $4,000 $5,000 $5,000

SIMPLE Elective Deferrals**

$10,500 $10,500 $10,500 $11,500

SEP Annual Comp Limit

$450 $500 $500 $500
DC Dollar Limit $44,000 $45,000 $46,000 $49,000

DB Max Benefit

$175,000 $180,000 $185,000 $195,000

Compensation Limit

$220,000 $225,000 $230,000 $245,000

Taxable Wage Base

$94,200 $97,500 $102,000 $106,800

Highly Compensated Employee

$100,000 $100,000 $105,000 $110,000

*/ ** &*** Catchup Amounts for those over age 50 in any plan year

2003

2004

2005

2006 2007 2008 2009

*  Plus addl  Catch-up Deferrals 

$2,000

$3,000

$4,000

$5,000 $5,000 $5,000 $5,500

** Plus addl  Catch-up Deferrals

$1,000

$1,500

$2,000

$2,500 $2,500 $2,500 $2,500

*** Plus addl  Catch-up Deferrals

$500

$500

$500

$1,000 $1,000 $1,000 $1,000

IRA Deduction Phase out Limits
(for "active" participants in a qualified plan)

Annual contributions to an IRA and ROTH are limited to $4,000 beginning in 2005 through 2007, reduced by contributions to any other type of IRA
(i.e.: ROTH) and are not allowed to be made by individuals over age 70 1/2. However, not all contributions to IRAs are deductible if you are an active participant in a Qualified Plan (ie: is the "pension plan" box checked on your IRS Form W2 for the applicable tax year).  Deductions for the IRA contributions are subject to income limits and phased out as follows:

Tax years
beginning in

Single
Taxpayer
Married Filing Jointly
2007 $50,000-60,000 $80,000-$100,000
2008 $53,000-$63,000 $85,000-$105,000
2009 $53,000-$63,000 $85,000-$105,000


ROTH IRA Limits

Annual contributions to a Roth IRA are $5,000 for 2008 through 2009, reduced by contributions to any other type of IRA. Not all individuals can make Roth IRA contributions.  They are subject to income limits and phased out as follows:

     Married taxpayers filing jointly................$159,160,000

    Married taxpayers filing separately...........$0
     Single taxpayers..................................... $101,000-$116,000.


ROTH Conversion

In order to covert IRAs and Retirement Plan Distributions to a ROTH IRA for 2008 and 2009 your HOUSEHOLD Income must be below a certain level  (the limit is $0 for married filing separate).  For 2010 and on...there is no income limit.  The limit for all except married filing separate is $100,000 for 2008 and 2009. This is a HOUSEHOLD Income limit.

 

IRC Section 401(a)(4) Minimum Distribution Factors*

Age Distribution Period

Age

Distribution Period
70 27.4 76 22.0
71 26.5 77 21.2
72 25.6 78 20.3
73 24.7 79 19.5
74 23.8 80 18.7
75 22.9 81 17.9

                                *  These are uniform life table factors (ie: they are not j&s factors)

 

 

 

 

If you would like more information on the above...or any other related topic...or answers to a specific question...please...

e mail us @ mailto:Brostek@wiafinancial.com
or call/write/fax/e fax us @


WIA Financial Associates
100 Broadhollow Road Suite 203
Farmingdale, New York  11735
(516) 249-0469 phone    (516) 249-0310 fax    

Key Contacts For All Services
     Hollie L. Brostek, QPA-President

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