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The Internal Revenue Code provides for dollar limitations on benefits and contributions under qualified retirement plans. Code §415 requires the limits to be adjusted annually for cost-of-living increases. The IRS announced on October 15, 2009 cost-of-living adjustments applicable to dollar limitations for pension plans and other items for tax year 2010.
Please see our COLA Increases Table for prior years' dollar limitations.
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Code
Section
|
2010
|
2009
|
2008
|
|
IRAs
|
| IRA Contribution Limit - 219(b)(5)(A) |
5,000 |
5,000 |
5,000 |
| IRA Catch-Up Contributions - 219(b)(5)(B) |
1,000 |
1,000 |
1,000 |
| IRA AGI Deduction Phase-out Starting at |
| Joint Return |
89,000 |
89,000 |
85,000 |
| Single or Head of Household |
56,000 |
55,000 |
53,000 |
|
SEP
|
| SEP Minimum Compensation - 408(k)(2)(C) |
550 |
550 |
500 |
| SEP Maximum Compensation - 408(k)(3)(C) |
245,000 |
245,000 |
230,000 |
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SIMPLE Plans
|
| SIMPLE Maximum Contributions - 408(p)(2)(E) |
11,500 |
11,500 |
10,500 |
| Catch-up Contributions - 414(v)(2)(B)(ii) |
2,500 |
2,500 |
2,500 |
|
401(k), 403(b), Profit-Sharing Plans, etc.
|
| Annual Compensation - 401(a)(17)/404(l) |
245,000
|
245,000
|
230,000
|
| Elective Deferrals - 402(g)(1) |
16,500 |
16,500 |
15,500 |
| Catch-up Contributions - 414(v)(2)(B)(i) |
5,500 |
5,500 |
5,000 |
| Defined Contribution Limits - 415(c)(1)(A) |
49,000 |
49,000 |
46,000 |
| ESOP Limits - 409(o)(1)(C) |
985,000
195,000
|
985,000
195,000
|
935,000
185,000
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Other
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| HCE Threshold - 414(q)(1)(B) |
110,000 |
110,000 |
105,000 |
| Defined Benefit Limits - 415(b)(1)(A) |
195,000 |
195,000 |
185,000 |
| Key Employee - 416(i)(1)(A)(i) |
160,000 |
160,000 |
150,000 |
| 457 Elective Deferrals - 457(e)(15) |
16,500 |
16,500 |
15,500 |
| Control Employee - 1.61-21(f)(5)(i) |
95,000 |
95,000 |
90,000 |
| Control Employee - 1.61-21(f)(5)(iii) |
195,000 |
195,000 |
185,000 |
| Taxable Wage Base |
106,800 |
106,800 |
102,000 |
We have also produced a white paper that discusses the methodology that the Service uses to determine the limitations. This white paper includes the unrounded limitations.
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