On October 15, 2009, the IRS issued news release IR-2009-94 announcing cost-of-living adjustments to dollar limitations for pension plans. Items addressed for 2010 include:
Elective deferrals
- The annual elective deferral limit for 401(k) plans, 403(b) plans, 457(b) plans, SAR-SEPs, and the federal government’s Thrift Savings Plan remains unchanged at $16,500
- The annual elective deferral limit for SIMPLE plans remains unchanged at $11,500
Employee “catch-up” contributions for individuals age 50 or older
- The annual limit on additional catch-up contributions to 401(k), 403(b), and Section 457(b) plans remains unchanged at $5,500
- The annual limit on additional catch-up contributions to a SIMPLE plan remains unchanged at $2,500
Other key figures
- The dollar limit on annual additions to a defined contribution plan remains unchanged at $49,000
- The dollar limit on the annual benefit under a defined benefit plan remains unchanged at $195,000
- The annual compensation limit for qualified retirement plan purposes remains unchanged at $245,000
- The annual compensation amount used in the definition of a highly compensated employee remains unchanged at $110,000
- The annual compensation amount used in the definition of a key employee in a top-heavy plan remains unchanged at $160,000
- For purposes of determining a qualifying employee under a simplified employee pension (SEP) plan, the minimum amount of annual compensation remains unchanged at $550
For more information, see IR-2009-094.
