10/15/2009
IRS Announces Limitations for 2010
The IRS recently released the 2010 dollar limits for qualified retirement plans.
This information is provided for informational purposes to The Standard’s clients and is not intended as legal advice.
| Item | IRC Reference | 2009 Limit | 2010 Limit |
|---|---|---|---|
| 401(k) and 403(b) Employee Deferral1 | 402(g)(1) | $16,500 | $16,500 |
| 457 Employee Deferral | 457(e)(15) | $16,500 | $16,500 |
| Catch-up Contribution2 | 414(v)(2)(B)(i) | $5,500 | $5,500 |
| Defined Contribution | 415(c)(1)(A) | $49,000 | $49,000 |
| Defined Benefit | 415(b)(1)(A) | $195,000 | $195,000 |
| Compensation3 | 401(a)(17); 404(l) | $245,000 | $245,000 |
| Highly Compensated Employee Income4 | 414(q)(1)(B) | $110,000 | $110,000 |
| Key Employee Officer | 416(i)(1)(A)(i) | $160,000 | $160,000 |
| Social Security Taxable Wage Base | $106,800 | $106,800 |
1 Employee deferrals to all 401(k) and 403(b) plans must be aggregated for purposes of this limit. A lower limit applies to SIMPLE plans.
2 Available to employees age 50 or older during the calendar year. A lower limit applies to SIMPLE plans.
3 All compensation from a single employer (including all members of a controlled group) must be aggregated for purposes of this limit.
4 For the 2010 plan year, an employee who earned more than $110,000 in 2009 is an HCE. For the 2011 plan year, an employee who earns more than $110,000 in 2010 is an HCE.
