Most of the dollar limitations applicable for 2010 to employee benefit plans qualified under the Internal Revenue Code (the "Code") remain unchanged from the corresponding dollar limitations for 2009. Listed below are certain of the dollar limitations applicable for 2010 to employee benefit plans qualified under the Code:

For the 2010 calendar year, the annual limitation under Code section 402(g)(1) on the amount of elective deferrals to Code section 401(k) plans, Code section 403(b) plans, and Code section 457(b) plans will remain at $16,500. Also, for the 2010 calendar year, the annual limitation under Code section 414(v)(2)(B)(i) will remain at $5,500 for additional elective deferrals that participants age 50 or over will be allowed to make as pre-tax "catch-up" contributions to 401(k) plans (other than "SIMPLE" 401(k) plans for which the amount will remain at $2,500), 403(b) plans, and 457(b) governmental plans.

For plan years beginning in 2010, the annual compensation that a plan may take into account under Code sections 401(a)(17) and 404(l) will remain at $245,000.

For plan years beginning in 2010, the compensation threshold used in the definition of highly compensated employee under Code section 414(q)(1)(B) will remain at $110,000. Because the compensation used to determine highly compensated employee status for a particular plan year is compensation for the prior plan year, (i) for determining highly compensated employee status in the plan year beginning in 2010, the relevant compensation will be compensation for the plan year beginning in 2009 and the threshold for that year was also $110,000, and (ii) for determining highly compensated employee status in the plan year beginning in 2009, the relevant compensation will be compensation for the plan year beginning in 2008 and the threshold for that year was $105,000.

For limitation years ending in 2010, the annual addition limitation for defined contribution plans under Code section 415(c)(1)(A) will remain at $49,000, and the annual benefit limitation for defined benefit plans under Code section 415(b)(1)(A) will remain at $195,000.

For the 2010 calendar year, the FICA taxable wage base will remain at $106,800.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.