Retirement Plan Limits Hold for 2010

The IRS has announced the annual cost-of-living adjustments for certain retirement-plan thresholds. Due to the relatively low inflation rate, the limits for 2010 remain the same as they were in 2009.

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Plan provision 2010 limit
Maximum annual dollar benefit for a defined benefit plan $195,000
Maximum dollar limit on additions to a defined contribution plan $49,000
Maximum amount of compensation taken into account for qualified retirement plans $245,000
Dollar limit for definition of “key employee” in top-heavy retirement plan $160,000
Dollar limit for definition of “highly compensated employee” in qualified plan $110,000
Dollar limit for elective deferrals to a 401(k) plan $16,500
Dollar limit for contributions to a Savings Incentive Match Plan for Employees (SIMPLE) $11,500
Dollar limit for elective deferrals to deferred compensation plans of state and local
governments and tax-exempt organizations
$16,500
Dollar limit for catch-up contributions to a SIMPLE $2,500
Dollar limit for catch-up contributions to a 401(k), 457, 403(b) and Simplified Employee Pension (SEP) $5,500

 

Other articles in the April 2010 Edition of Business Matters: