![]() ![]() ![]() |
![]() | ![]() ![]() | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
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 |