The Internal Revenue Service and the Social Security Administration have announced 2010 cost-of-living adjustments to limitations applicable to qualified retirement plans. Here is a summary of the new 2010 limitations:
The social security taxable wage base is unchanged at $108,800.
The limitation for defined contribution plans under Section 415(c)(1)(A) is unchanged for 2010 at $49,000.
The limitation on the annual benefit under a defined benefit plan under Section 415(b)(1)(A) remains unchanged at $195,000.
The annual compensation limit under Sections 401(a)(17) for qualified plans, 404(l) for deduction purposes, 408(k)(3)(C) for SEPs, and 408(k)(6)(D)(ii) for SARSEPs remains unchanged at $245,000.
The threshold used in the definition of highly compensated employee under Section 414(q)(1)(B) remains unchanged at $110,000.
The threshold concerning the definition of “Key Employee” in a top-heavy plan under Section 416(i)(1)(A)(i) remains unchanged at $160,000.
2010 year limitations mandated by the provisions of EGTRRA.
The limitation under Sections 402(g) for 401(k) plans, SARSEPs, and 403(b) plans, and 457(e) for 457 plans, for elective salary deferrals remains unchanged at $16,500.
The limitation under Section 408(p)(2)(E) regarding SIMPLE retirement accounts remains unchanged at $11,500.
The limitation for catch-up contributions to an applicable employer plan other than a plan described in Section 401(k)(11) or Section 408(p) for individuals aged 50 or over remains unchanged at $5,500.
The dollar limitation under Section 414(v)(2)(B)(ii) for catch-up contributions to an applicable employer plan described in Section 401(k)(11) or Section 408(p) for individuals aged 50 or over remains unchanged at $2,500
For more details, see the announcement on the
IRS website.
Posts
No comments:
Post a Comment