•  
 /  About Us / Details
November 5, 2009

2010 Retirement Plan COLAs

Following are highlights of the 2010 cost-of-living adjustments (COLAs) issued by the IRS, applicable to defined benefit and defined contribution plans.  You will note that, by and large, there are no adjustments for 2010.  A COLA is based on the cost of living index; which has dropped; and thus, there are no increases for 2010.

 

2009

2010

Defined benefit plan annual limit

$195,000

$195,000

Defined contribution plan annual limit

$49,000

$49,000

Elective deferral limit for purposes of cash or deferred arrangements (401(k) plans) and tax-sheltered annuities (403(b) plans)

 

$16,500

 

$16,500

Maximum deferral limit for 457 plans

$16,500

$16,500

>Age 50 Catch-up Contribution Limit to 401(k), 403(b) or 457(b) Plans

$5,500

$5,500

Maximum deferral limit for SIMPLE plans

$11,500

$11,500

>Age 50 Catch-up Contribution Limit to SIMPLE Plans

$2,500

$2,500

Minimum compensation considered in determining eligibility for a SEP

$550

$550

Threshold for Highly compensated employee (HCE)

$110,000

$110,000

Key Employee Compensation Limit for Top Heavy Plan Purposes

 

$160,000

 

$160,000

Annual compensation limit

$245,000

$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

Insights in Your Inbox
Find Us
  • OR