Archive for October, 2008
Retirement Plans Contribution Limits
October 18th, 2008
Below is a chart of retirement plan Contribution limits showing historical Contribution limits from 2002 to 2006. SEP IRA, Profit Sharing and Money Purchase Plan maximum Contribution or Keogh have the highest retirement plan Contribution limits, followed by 401k, 403b, and Section 457 retirement plans. This high Contribution limits make SEP IRA, Profit Sharing and Money Purchase Plan maximum Contribution or Keogh very popular retirement vehicles.
| 2006 | 2005 | 2004 | 2003 | 2002 | |
|---|---|---|---|---|---|
| 401(k) and SARSEP elective deferrals | $15,000 | $14,000 | $13,000 | $12,000 | $11,000 |
| 403(b) elective deferrals | $15,000 | $14,000 | $13,000 | $12,000 | $11,000 |
| SIMPLE IRA elective deferrals. | $10,000 | $10,000 | $9,000 | $8,000 | $7,000 |
| Catch-up contributions at age 50 or over to 401(k), 403(b), SARSEP and 457 plans | $5,000 | $4,000 | $3,000 | $2,000 | $1,000 |
| Catch-up contributions at age 50 or over to SIMPLE IRA Plans. | $2,500 | $2,000 | $1,500 | $1,000 | $500 |
| SEP IRA, Profit Sharing and Money Purchase Plan maximum Contribution or Keogh. | $44,000 | $42,000 | $41,000 | $40,000 | $40,000 |
| SEP IRA minimum compensation Eligibility threshold. | $450 | $450 | $450 | $450 | $450 |
| Section 457 retirement plan – state and local government plans elective deferrals | $15,000 | $14,000 | $13,000 | $12,000 | $11,000 |
| Compensation limit (maximum for calculations) |
$220,000
|
$210,000 | $205,000 | $200,000 | $200,000 |
The retirement plan Contribution limit increases are provided for under the Economic Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA”). EGTRRA has a sunset provision under which these increases and other changes in the tax law will expire at the end of 2010.
In 2011 the tax law will revert back to the rules that would be in effect had EGTRRA never been enacted, unless EGTRRA is extended by Congress and the President.
Posted in Contributions | 
Tags: contribution limits, retirement, retirement plans contribution limits, retirement vehicles | 
No Comments »