Retirement Plan Limits Hold for 2010
The IRS has announced the annual cost-of-living adjustments for certain retirement-plan thresholds. Due to the relatively low inflation rate, the limits for 2010 remain the same as they were in 2009.
| Plan provision | 2010 limit |
|---|---|
| Maximum annual dollar benefit for a defined benefit plan | $195,000 |
| Maximum dollar limit on additions to a defined contribution plan | $49,000 |
| Maximum amount of compensation taken into account for qualified retirement plans | $245,000 |
| Dollar limit for definition of “key employee” in top-heavy retirement plan | $160,000 |
| Dollar limit for definition of “highly compensated employee” in qualified plan | $110,000 |
| Dollar limit for elective deferrals to a 401(k) plan | $16,500 |
| Dollar limit for contributions to a Savings Incentive Match Plan for Employees (SIMPLE) | $11,500 |
| Dollar limit for elective deferrals to deferred compensation plans of state and local governments and tax-exempt organizations | $16,500 |
| Dollar limit for catch-up contributions to a SIMPLE | $2,500 |
| Dollar limit for catch-up contributions to a 401(k), 457, 403(b) and Simplified Employee Pension (SEP) | $5,500 |