News & Events

On October 15, 2009, the IRS announced that the applicable dollar limits and thresholds for 401(k) and other tax-qualified retirement plans in 2010 would remain unchanged from 2009.   Here are the 2010 limits and thresholds most relevant to 401(k) and other defined contribution plans:

    Annual Additions. The limit on annual additions (i.e., contributions and forfeiture allocations to a participant's accounts)  under defined contribution plans, including 401(k) plans, remains $49,000.

    Compensation. The annual limit on compensation that can be taken into account  under a plan remains $245,000.

    Elective Deferrals. The annual limit on  401(k)  elective deferrals  (regular pre-tax and Roth) remains $16,500. The annual limit on catch-up contributions for individuals age 50 or over remains $5,500.

    HCE. The threshold for determining who is a "highly compensated employee" remains $110,000.

    Key Employee. The threshold for determining who is a "key employee" in a top-heavy plan remains $160,000.

 With respect to tax-qualified retirement plans that are integrated with Social Security, the Social Security Administration has announced that the Social Security taxable wage base (i.e., the taxable maximum) remains $106,800.