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Foster Swift Employment, Labor & Benefits Quarterly
December 2009
The IRS has announced the cost-of-living adjustments applicable to pension plan limitations for 2010. The cost-of-living index for the quarter ended September 30, 2009 is less than the cost-of-living index for the quarter ended September 30, 2008; therefore, the limits remain unchanged from the 2009 levels. The chart below sets forth the applicable limitations.
|
Employee Plan COLA |
2009 Limit |
2010 Limit |
|---|---|---|
|
401(k) and 403(b) Employee Contribution Limit |
$16,500 |
$16,500 |
|
"Catch-Up Contribution" Limit |
$5,500 |
$5,500 |
|
Defined Contribution Maximum |
$49,000 (plus "Catch-Up") |
$49,000 (plus "Catch-Up") |
|
Highly Compensated Employee |
$110,000 (look back year compensation) |
$110,000 (look back year compensation) |
|
Annual Compensation Limit |
$245,000 |
$245,000 |
|
457 Plan Contribution Limit |
$16,500 |
$16,500 |
|
Social Security Wage Base |
$106,800 |
$106,800 |
Please contact your Foster Swift employee benefits professional if you have any questions regarding these limits.