The Internal Revenue Service has recently announced the cost-of-living adjustments applicable to dollar limitations for tax-qualified retirement plans. The limits are generally effective January 1, 2009 (or in some cases applicable, for plan years beginning on or after January 1, 2009.) The 2008 and 2009 limits are as follows:
Maximum Deferral Limits |
2008 |
2009 |
|
$15,500 |
$16,500 |
|
$5,000 |
$5,500 |
Benefit Limits |
||
|
$46,000 |
$49,000 |
|
$185,000 |
$195,000 |
Compensation Limits |
||
|
$230,000 |
$245,000 |
|
$150,000 |
$160,000 |
|
$105,000 |
$110,000 |
Employee Stock Ownership Plans |
||
|
$935,000 |
$985,000 |
|
$185,000 |
$195,000 |
Social Security |
||
|
$102,000 |
$106,800 |
**Please note that this Client Alert is only a summary of the cost-of-living adjustments and is not intended as legal advice or counsel. If you have any questions regarding the effect of the 2009 limits on your qualified retirement plan(s), please contact any member of our Employee Benefits and Executive Compensation group.
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.