2007/2008 Retirement Plan Limitations

Qualified Plan Limits		2007		2008
401(k) annual limit (402(g))	$	15,500	$	15,500
Elective deferrals for 403(b) plan (Sec 403(b))		15,500		15,500
Over age 50 "catch-up"		5,000		5,000
457 deferral limit (government 401(k))		15,500		15,500
Total deferral with catch-up for persons over 50 years old 401(k), 403(b), SARSEP, and 457		20,500		20,500
Total elective deferrals for a SIMPLE plan (Sec 408(p)(2)(A))		10,500		10,500
Total deferral with catch-up for SIMPLE plans		13,000		13,000
Defined benefit plan - annual benefit		180,000		180,000
Defined contribution plan - annual contributions		45,000		46,000
Deductible, nondeductible, and Roth IRA contribution limits (Secs 219(b)(1)(A) and 408(a)(1))		4,000		5,000
Total IRA contributions with catch-up provisions for individuals 50 or older by year end (Sec 209(a)(5)(B))		5,000		6,000
Maximum compensation limit		225,000		230,000
SEP annual compensation floor		500		500
Traditional IRA Phaseout Modified Adjusted Gross Income Limitations (Code Sec 408)
Joint return floor		83,000		85,000
Joint return ceiling		103,000		105,000
Single/HOH floor		52,000		53,000
Single/HOH ceiling		62,000		63,000
Married filing separately floor		0		0
Married filing separately ceiling		10,000		10,000
Spouse in a plan and other
Spouse (nonworking) coverage only floor		156,000		159,000
Spouse (nonworking) coverage only ceiling		166,000		169,000
Roth IRA Modified Adjusted Gross Income Limits (Sec 408A) (not indexed)
Joint return floor		156,000		159,000
Joint return ceiling		166,000		169,000
Single/HOH floor		99,000		101,000
Single/HOH ceiling		114,000		116,000
Roth conversion limit		100,000		100,000
Highly Compensated Employees
Any employee compensation		100,000		105,000
Key Employees
Officer compensation		145,000		150,000
1% owner		150,000		150,000
Social Security Tax
Social Security rate		6.20%		6.20%
Medicare rate		1.45%		1.45%
Combined rate		7.65%		7.60%
Self-Employment Tax		12.40%		12.40%
Self-employment rate		2.90%		2.90%
Medicare rate		15.30%		15.30%
Combined rate
Covered Compensation Limits
Social Security		97,500		102,000
Medicare		no limit		no limit
Cost of living adjustment		3.3%		2.3%
Maximum Monthly Benefit
Retirement at 62		1,634		1,682
Retirement at 65		2,044		2,030
Retirement at 70		2,734		2,794

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