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2007/2008 Retirement Plan Limitations

Qualified Plan Limits
2007
2008
401(k) annual limit (402(g))
$
15,500
$
15,500
Elective deferrals for 403(b) plan (Sec 403(b))
15,500
15,500
Over age 50 "catch-up"
5,000
5,000
457 deferral limit (government 401(k))
15,500
15,500
Total deferral with catch-up for persons over 50 years old 401(k), 403(b), SARSEP, and 457
20,500
20,500
Total elective deferrals for a SIMPLE plan (Sec 408(p)(2)(A))
10,500
10,500
Total deferral with catch-up for SIMPLE plans
13,000
13,000
Defined benefit plan - annual benefit
180,000
180,000
Defined contribution plan - annual contributions
45,000
46,000
Deductible, nondeductible, and Roth IRA contribution limits (Secs 219(b)(1)(A) and 408(a)(1))
4,000
5,000
Total IRA contributions with catch-up provisions for individuals 50 or older by year end (Sec 209(a)(5)(B))
5,000
6,000
Maximum compensation limit
225,000
230,000
SEP annual compensation floor
500
500
Traditional IRA Phaseout Modified Adjusted Gross Income Limitations (Code Sec 408)
Joint return floor
83,000
85,000
Joint return ceiling
103,000
105,000
Single/HOH floor
52,000
53,000
Single/HOH ceiling
62,000
63,000
Married filing separately floor
0
0
Married filing separately ceiling
10,000
10,000
Spouse in a plan and other
Spouse (nonworking) coverage only floor
156,000
159,000
Spouse (nonworking) coverage only ceiling
166,000
169,000
Roth IRA Modified Adjusted Gross Income Limits (Sec 408A) (not indexed)
Joint return floor
156,000
159,000
Joint return ceiling
166,000
169,000
Single/HOH floor
99,000
101,000
Single/HOH ceiling
114,000
116,000
Roth conversion limit
100,000
100,000
Highly Compensated Employees
Any employee compensation
100,000
105,000
Key Employees
Officer compensation
145,000
150,000
1% owner
150,000
150,000
Social Security Tax
Social Security rate
6.20%
6.20%
Medicare rate
1.45%
1.45%
Combined rate
7.65%
7.60%
Self-Employment Tax
12.40%
12.40%
Self-employment rate
2.90%
2.90%
Medicare rate
15.30%
15.30%
Combined rate
Covered Compensation Limits
Social Security
97,500
102,000
Medicare
no limit
no limit
Cost of living adjustment
3.3%
2.3%
      
Maximum Monthly Benefit
Retirement at 62
1,634
1,682
Retirement at 65
2,044
2,030
Retirement at 70
2,734
2,794

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