J&D Benefits Perspective

2010 Indexed Figures for Qualified Retirement Plans

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

2010 HSA and HDHP Limits

Contribution limits for Health Savings Accounts (HSAs) and deductible and out-of-pocket expense limits for HSA-qualified High Deductible Health Plans (HDHPs) will change effective January 1, 2010.

Annual Dollar Limit	2009	2010
Maximum HSA Contribution - Individual	$3,000	$3,050
Maximum HSA Contribution - Family	$5,950	$6,150
Maximum HDHP Deductible - Individual	$1,150	$1,200
Maximum HDHP Deductible - Family	$2,300	$2,400
Maximum HDHP Out-of-Pocket Expense - Individual	$5,800	$5,950
Maximum HDHP Out-of-Pocket Expense - Family	$11,600	$11,900

Contact your Johnson & Dugan Account Executive for details about HSA plans. For additional information about Health Savings Accounts, including answers to frequently asked questions, related IRS forms and publications, technical guidance, and links to other helpful web sites, see the Treasury Department website: http://www.treas.gov/offices/public-affairs/hsa/

IRS Section 79 – Imputed Income

For Group-Term Life Insurance and Domestic Partner Benefits

Jody Lee, Compliance Manager, Johnson & Dugan

The first $50,000 of Group-Term Life Insurance is excluded from gross income pursuant to Section 79 of the IRS Code. Any Group-Term Life Insurance coverage in excess of that amount is taxed as imputed income under Table I of the section 79 regulations. The first Table I was published in 1966 and has been subsequently revised in 1983, 1988 and 1999.

Below is the current Table I rate schedule.