2009 Retirement Plan Contribution Limits
The IRS has announced the cost of living adjustments applicable to dollar limitations for 401(k), profit sharing, IRAs, and other retirement plans in 2009. The new limits are as follows:
- 401(k) limit will increase from $15,500 to $16,500.
- 401(k) “catch-up” limit for individuals age 50 and over will increase from $5,000 to $5,500.
- Defined contribution plan limit will increase from $46,000 to $49,000.
- Defined benefit and cash balance plan annual benefit limit will increase from $185,000 to $195,000.
- Contribution limit for benefit and contribution calculation will increase from $230,000 to $245,000.
- Highly compensated employee definition will increase from $150,000 to