Retirement Plan Limits for 2005

 

The IRS recently announced the 2005 cost of living adjustments and other new limits for retirement plans.  Effective January 1, 2005, the following limits apply.  The limits for 2004 are also shown below.

 

                                                                                      2004                2005

Defined Benefit Plan Benefit Limit                   $165,000         $170,000

IRC §415(b)(1)(A)

Defined Contribution Plan Dollar Limit             $41,000           $42,000

IRC §415(c)(1)(A)

401(k)/403(b) Elective Deferral Limit                   $13,000           $14,000

IRC §402(g)(1)

Governments/Tax-Exempts Deferral Limit         $13,000           $14,000

IRC §457(e)(15)

Qualified Plan/403(b)/457 “Catch-Up” Limit        $3,000             $4,000

IRC §414(v)(2)(B)(i)

Annual Compensation Limit                               $205,000         $210,000

IRC §§401(a)(17), 404(l)

Highly Compensated Employee (HCE) Limit    (HCEs in         (HCEs in

IRC §414(q)(1)(B)                                                       2005)               2006)

Compensation in the prior year exceeding                 $90,000           $95,000

Key Employee Officer Compensation                $130,000         $135,000

IRC §416(i)(1)(A)(i)

SEP Minimum Compensation                                    $450                $450

IRC §408(k)(2)(C)

SEP Compensation                                               $205,000         $210,000

IRC §408(k)(3)(C)

SIMPLE Employee Contribution Limit                  $9,000           $10,000

IRC §408(p)(2)(E)

SIMPLE “Catch-Up” Deferral Limit                      $1,500             $2,000

IRC §414(v)(2)(B)(ii)

Social Security Taxable Wage Base                     $87,900           $90,000