Every year the Internal Revenue Service publishes updated limits governing Qualified Retirement Plans. These statutory limits are adjusted by the Commissioner based on cost of living increases. Many of the pension plan limitations did not change for 2010 because the increase in the cost-of-living index did not meet the statutory thresholds that trigger their adjustment. The below chart is a summary of the major changes.
| Qualified Plan Limits | 2007 | 2008 | 2009 | 2010 |
|---|---|---|---|---|
| Elective Deferrals | $15,500 | $15,500 | $16,500 | $16,500 |
| Catch-up Contributions | $5,000 | $5,000 | $5,500 | $5,500 |
| Defined Benefit Plan Annual Benefit Limit | $180,000 | $185,000 | $195,000 | $195,000 |
| Defined Contribution Plan Maximum Contributions | $45,000 | $46,000 | $49,000 | $49,000 |
| Limit on Annual Compensation | $225,000 | $230,000 | $245,000 | $245,000 |
| Highly Compensated on the basis of income | $100,000 | $105,000 | $110,000 | $110,000 |
| Social Security Taxable Wage Base | $97,500 | $102,000 | $106,800 | $106,800 |
| Top Heavy Key Employee | $145,000 | $150,000 | $160,000 | $160,000 |
If you have any questions regarding how these limits affect the administration of your plan, please do not hesitate to contact us at any time. Phone: 610-971-2100
www.adcbenefits.com