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FYI: 2010 IRS and Social Security Limits for Benefit Plans




by:
Cynthia A. Van Bogaert
Boardman Law Firm LLP - Madison Office

 
October 27, 2009

Previously published on October 16, 2009

The IRS announced its 2010 cost-of-living adjustments for pension plans in a release dated October 15, 2009. These limits also affect some aspects of non-pension benefit plans. (See: http://www.irs.gov/newsroom/article/0,,id=214321,00.html)

Some of the limits covered in the announcement include:

  • The deferral limit under Code Section 402(g) is unchanged at $16,500 in 2010. (Catch up contributions are unchanged at $5,500 in 2010.)
  • The compensation limit under Code Section 401(a)(17) is unchanged at $245,000 in 2010.
  • The annual addition contribution limit under Code Section 415 for individuals in 401(k) plans is unchanged at $49,000 in 2010.
  • The highly compensated employee limit under Code Section 414(q) is unchanged at $110,000 in 2010.
  • The limit used in determining officer key employees under Code Section 416 is unchanged at $160,000 in 2010.
  • The Social Security Wage Base (maximum earnings taxable) for 2010 is unchanged at $106,800. (See http://www.ssa.gov/pressoffice/factsheets/colafacts2010.htm.)
  • The qualified transportation monthly limits for 2010 are $230 for transit passes and $230 for parking. (See Rev. Proc. 2009-66.)


 

The views expressed in this document are solely the views of the author and not Martindale-Hubbell. This document is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance.
 

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