2009 Retirement Plan Limits
This summary shows changes in dollar limits for retirement plans for tax year 2009. We encourage you to contact us for more education about these limits so that you may contribute as much as possible to help secure your financial future. Please call us at 334-685-1805.
Please remember that we cannot give tax or estate advice; however, with your permission, we can and will coordinate with your estate attorney and/or tax professional in your financial planning.
|
|
2008 |
Increase |
2009 |
|
403(b) Employee Elective Contribution Limit1 |
$15,500 |
$1,000 |
$16,500 |
|
403(b) Age 50 Catch-up Contribution Limit1 |
$5,000 |
$500 |
$5,500 |
|
403(b) 15 Years of Service Catch-up Contribution2 |
$3,000 |
|
$3,000 |
|
Potential Total of all 403(b) Employee Contributions |
$23,500 |
$1,500 |
$25,000 |
|
457(b) Contribution Limit |
$15,500 |
$1,000 |
$16,500 |
|
457(b) Age 50 Catch-up Contribution Limit3 |
$5,000 |
$500 |
$5,500 |
|
401(k) Employee Elective Contribution Limit1,4 |
$15,500 |
$1,000 |
$16,500 |
|
401(k)Age 50 Catch-up Contribution Limit1 |
$5,000 |
$500 |
$5,500 |
|
SIMPLE Employee Elective Contribution Limit1 |
$10,500 |
$1,000 |
$11,500 |
|
SIMPLE Age 50 Catch-up Contribution Limit1 |
$2,500 |
|
$2,500 |
|
SEP IRA Minimum Compensation Limit |
$500 |
$50 |
$550 |
|
SEP IRA Annual Compensation Limit |
$230,000 |
$15,000 |
$245,000 |
|
SEP IRA Defined Contribution Limit |
$46,000 |
$3,000 |
$49,000 |
|
Traditional and Roth IRA (before age 50) |
$5,000 |
|
$5,000 |
|
Traditional and Roth IRA (age 50+) |
$6,000 |
|
$6,000 |
|
Defined Contribution Overall Limit |
$46,000 |
$3,000 |
$49,000 |
|
Defined Benefit Overall Limit |
$185,000 |
$10,000 |
$195,000 |
|
Highly Compensated Threshold |
$105,000 |
$5,000 |
$110,000 |
|
Qualified Plan Compensation Limit |
$230,000 |
$15,000 |
$245,000 |
|
Social Security Wage Base |
$102,000 |
$4,800 |
$106,800 |
|
Social Security Withholding Rate |
6.2% |
|
6.2% |
|
Medicare Withholding Rate |
1.45% |
|
1.45% |
|
Social Security Tax Rate for Self-Employed Individuals |
12.4% |
|
12.4% |
|
Medicare Tax Rate for Self-Employed Individuals |
2.9% |
|
2.9% |
(1) These limits are coordinated with elective contributions to other 403(b), SIMPLE, 401(k) and grandfathered salary reduction SEP plans.
(2) Available for an employee with 15 years of service with certain qualified employers, regardless of age, who has not contributed, on average, at least $5,000 per year into a 403(b) account, up to a lifetime maximum of $15,000. May be combined with the age 50 catch-up contribution.
(3) Available only to those in 457(b) Governmental plans (i.e. – deferred compensation agreement for any state, political subdivision of a state and their agencies and instrumentalities).
(4) Elective contributions of highly compensated employees may also be limited by the average deferral percentage test.
