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Find answers to the most frequently asked questions like:
Q: How much can I contribute to my 401(k) Plan?
A: Each calendar year, tax laws limit pre-tax savings to a maximum dollar amount. The limit for 2006 is $15,000. New legislation allows those who have reached age 50 during the Plan Year can contribute an additional $5,000 in 2006.
Pension Plan Limitations for Tax Year 2010
Type of Limitation |
IRC Section |
2008 |
2009 |
2010 |
|
Defined Contribution |
415(c)(1)(A) |
$46,000 |
$49,000 |
$49,000 |
|
Maximum Compensation |
401(a)(17) |
$230,000 |
$245,000 |
$245,000 |
|
401(k), 403(b) Deferrals |
402(g)(1) |
$16,500 |
$16,500 |
$16,500 |
|
Catch-Up Contributions |
414(v)(2)(B)(i) |
$5,000 |
$5,500 |
$5,500 |
|
SIMPLE Deferrals |
408(p)(2)(E) |
$10,500 |
$11,500 |
$11,500 |
|
Highly Compensated |
414(q)(1)(B) |
$105,000 |
$110,000 |
$110,000 |
|
Key Employee (Officer) |
416(i)(1)(A)(i) |
$150,000 |
$160,000 |
$160,000 |
|
Social Security Taxable Wage Base |
|
$102,000 |
$106,800 |
$106,800 |
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