Following are highlights of the 2009 cost-of-living adjustments issued by the IRS, applicable to defined benefit and defined contribution plans.
| | 2008 | 2009 |
| Defined benefit plan annual limit | $185,000 | $195,000 |
| Defined contribution plan annual limit | $46,000 | $49,000 |
| Elective deferral limit for purposes of cash or deferred arrangements (401(k) plans) and tax-sheltered annuities (403(b) plans) | $15,500 | $16,500 |
| Maximum deferral limit for 457 plans | $15,500 | $16,500 |
| >Age 50 Catch-up Contribution Limit to 401(k), 403(b) or 457(b) Plans | $5,000 | $5,500 |
| Maximum deferral limit for SIMPLE plans | $10,500 | $11,500 |
| >Age 50 Catch-up Contribution Limit to SIMPLE Plans | $2,500 | $2,500 |
| Minimum compensation considered in determining eligibility for a SEP | $500 | $550 |
| Threshold for Highly compensated employee (HCE) | $105,000 | $110,000 |
| Key Employee Compensation Limit for Top Heavy Plan Purposes | $150,000 | $160,000 |
| Annual compensation limit | $230,000 | $245,000 |
The information contained in this Benefit Beat is not intended to be legal, accounting, or other professional advice, nor are these comments directed to specific situations.
As required by U.S. Treasury rules, we inform you that, unless expressly stated otherwise, any U.S. federal tax advice contained in this Benefit Beat is not intended or written to be used, and cannot be used, by any person for the purpose of avoiding any penalties that may be imposed by the Internal Revenue Service.