| Here are the unofficial 2009 pension limits. The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) increased the defined benefit plan limit, the defined contribution plan limit, the limit on includible compensation, and the 401(k), 403(b), and 457(b) deferral limit for 2009. In addition, EGTRRA created catch-up deferrals for participants age 50 and over. |
Principal Limits
|
| IRC |
LIMIT |
2008 ROUNDED |
2009 ROUNDED |
2009 UNROUNDED |
NEXT INCREMENT |
% INCREASE NEEDED |
| 415(b)(1) |
Defined benefit plan limit |
$185,000 |
$195,000 |
$197,360 |
$200,000 |
1.3% |
| 415(c)(1) |
Defined contribution plan limit |
$46,000 |
$49,000 |
$49,340 |
$50,000 |
1.3% |
| 401(a)(17) |
Limit on includible compensation* |
$230,000 |
$245,000 |
$246,700 |
$250,000 |
1.3% |
| 402(g)(1) |
Limit on 401(k)/403(b) elective deferrals** |
$15,500 |
$16,500 |
$16,707 |
$17,000 |
1.8% |
| 414(q) |
HCE definition |
$105,000 |
$110,000 |
$111,472 |
$115,000 |
3.2% |
| 414(v)(2) |
401(k)/403(b)/457(b) Catch-up deferrals |
$5,000 |
$5,500 |
$5,569 |
$6,000 |
7.7% |
|
Other Limits
|
| IRC |
LIMIT |
2008 ROUNDED |
2009 ROUNDED |
2009 UNROUNDED |
NEXT INCREMENT |
% INCREASE NEEDED |
| 457(b) |
Limit on nonqualified deferrals** |
$15,500 |
$16,500 |
$16,707 |
$17,000 |
1.8% |
| 409(o)(1)(C) |
ESOP payouts, 5-year limit |
$935,000 |
$985,000 |
$986,800 |
$990,000 |
0.3% |
| 409(o)(1)(C) |
ESOP payouts, additional 1-year limit |
$185,000 |
$195,000 |
$197,360 |
$200,000 |
1.3% |
| 408(k)(2)(C) |
SEP pay threshold |
$500 |
$550 |
$555 |
$600 |
8.1% |
|
*Governmental plans have special rules for eligible participants as defined in OBRA '93.
**EGTRRA increased the 401(k), 403(b), and 457(b) limits to $11,000 for 2002, and provided for $1000 annual increases in this limit until it reaches $15,000 in 2006. Thereafter, the limit will be adjusted for inflation. All other limits affected by EGTRRA will be adjusted for inflation beginning in 2003.
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