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 |
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)