Qualified Retirement Plan dollar limits will not change in 2010. Below is a chart of the contributions limits for 2009 and 2010.
| LIMITS | 2009 | 2010 |
|---|---|---|
| 401(k) Deferral Contribution Limit (Calendar Year) | $16,500 | $16,500 |
| 401(k) Catch-up Contribution Limit (over age 50) | $5,500 | $5,500 |
| Annual Contribution Limit Sec. 415 (Defined Contribution Plans) | $49,000 | $49,000 |
| Plan Compensation Limit | $245,000 | $245,000 |
| Social Security Wage Base | $106,800 | $106,800 |
Determination of Highly Compensated Employees:
- Employees owning more than 5% of a company, as well as an employee who is a spouse, child, parent or grandparent of an employee owning more than 5% of a company will always be considered highly compensated.
- Employees who earned more than $110,000 in 2009 will be considered highly compensated for 2010 non-discrimination testing.
- Employees who earn more than $110,000 in 2010 will be considered highly compensated employees (in most cases) for 2011 non-discrimination testing.
If you have any questions about how these limits will affect your 401(k) plan or employees, please contact the Johnson & Dugan Retirement Services Team at 650-266-9700.
