Why You Shouldn't Hire Your Payroll Company To Run Your 401K
| |
| Qualified
Plan Limits |
2009
|
2008 |
2007 |
|
401(k) Elective Deferrals |
$16,500 |
$15,500 |
$15,500 |
| Maximum 401(k)
Catch-Up Contributions |
$5,500 |
$5,000 |
$5,000 |
| Defined Benefit Plan
(Annual Benefit) |
$195,000 |
$185,000 |
$180,000 |
Defined Contribution
Plan
(Annual Contribution) |
$49,000 |
$46,000 |
$45,000 |
| SIMPLE Maximum
Deferral |
$11,500 |
$10,500 |
$10,500 |
| Annual Compensation
(for determining Maximum Benefits & Contributions) |
$245,000 |
$230,000 |
$225,000 |
| Social Security
Taxable Wage Base |
$106,800 |
$102,000 |
$97,500 |
| Highly
Compensated Employee (1) |
(5%
owner)
or $110,000 |
(5%
owner) or $105,000 |
(5%
owner) or $100,000 |
(1) For purposes of the Highly Compensated
Employee determination, the applicable limit determines the HCE's for
the following year (Ex: $100,000 or more in 2009 identifies the
individuals that will be HCE's in 2010).
|
