E-Bulletin: #4-08
Date: November 3, 2008
TO: ALL UNIFI COMPANIES SALES ASSOCIATES
RE: NEW PENSION PLAN LIMITS FOR 2009
Dollar limitations for pension plans and other items for the 2009 Tax Year are listed in the table below. Several of the annual limits are increased over last year because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment. However, for others, the limitation will remain unchanged.
|
Type
of Limit |
Annual Limits* |
|
|
2008 |
2009 |
|
|
Elective
deferral limit for 401(k), 403(b), 457, and SARSEP plans |
$15,500 |
$16,500 |
|
Catch-up
amount for 401(k), 403(b), and 457 plans for age 50+ |
$5,000 |
$5,500 |
|
Elective
deferral limit for SIMPLE-IRA and SIMPLE-401(k) plans |
$10,500 |
$11,500 |
|
Catch-up
amount for SIMPLE-IRA and SIMPLE-401(k) plans for age 50+ |
$2,500 |
$2,500u |
|
Limit
on annual additions to defined contribution plans, including 401(k),
profit-sharing, and money purchase plans |
$46,0001
or 100% of pay |
$49,0001
or |
|
Limit
on annual benefits under defined benefit plans |
$185,000 or 100% of
pay |
$195,000 or |
|
Maximum
compensation for qualified plans, SEPs and 403(b) plans |
$230,000 |
$245,000 |
|
Minimum
compensation for SEP plans |
$500 |
$550 |
|
Highly
compensated employee definition limit |
$105,000 |
$110,000 |
|
Key
employee compensation in top-heavy tests |
$150,000 |
$160,000 |
|
ESOP
payout limits (5-year threshold amount and 1-year extender amount) |
$935,000/$185,000 |
$985,000/$195,000 |
|
FICA
taxable wage base |
$102,000 |
$106,800 |
|
IRA
and Roth IRA contribution |
$5,000 |
$5,000u |
|
IRA
and Roth IRA catch-up for age 50+ |
$1,000 |
$1,000u |
|
IRA
deductibility, active participant, single tax filer |
AGI $53,000 -
$63,000 |
AGI $55,000 - $65,000 |
|
IRA
deductibility, active participant, married joint tax filer |
AGI $85,000 -
$105,000 |
AGI $89,000 -
$109,000 |
|
IRA
deductibility, spouse of active participant |
AGI $159,000 -
$169,000 |
AGI $166,000 -
$176,000 |
|
Roth
IRA contribution, single tax filer |
AGI $101,000 -
$116,000 |
AGI $105,000 -
$120,000 |
|
Roth
IRA contribution, married joint tax filer |
AGI $159,000 -
$169,000 |
AGI $166,000 -
$176,000 |
|
Roth
IRA convertibility for single and married joint tax filers |
AGI $100,000 |
AGI $100,000u,2
|
*AGI =
Adjusted Gross Income, excluding IRA contribution.
u = Unchanged from 2008
1 = Age 50+ catch-up elective deferrals are not subject to this
limit.
2 = Beginning in 2010, the $100,000 AGI limit is eliminated for Roth IRA
conversion eligibility purposes.
IRS Press Release IR-2008-118 may be retrieved online at http://www.irs.gov/newsroom/article/0,,id=187833,00.html
This E-Bulletin is furnished as a service of UNIFI Companies Advanced Sales Team. If you need further information, call the Advanced Sales Team at 800-825-1551, ext. 52849.
This information is provided for general information purposes only. UNIFI Companies is not authorized to provide tax or other legal advice. Clients should be encouraged to consult independent counsel before making decisions or taking action on this information,
For Producer or Broker/Dealer use only. Not for use With clients.