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401k Contribution Limits

  

401k Contribution Limits 2006-2007

MAXIMUM BENEFIT AND CONTRIBUTION LIMITS FOR QUALIFIED RETIREMENT PLANS AND GIFTING LIMITS

 

QUALIFIED PLAN LIMITS 2006 2007
401(k) Elective Deferrals $15,000 $15,500
Maximum 401 (k) Catch-Up Contributions (1) $5,000 $5,000
Defined Benefit Plan (Max. Annual Benefit) (3) $175,000 $180,000
Defined Contribution Plan (Max. Annual Contribution) (1) (3)
(If age 50 +, the limit for 2006 is $49,000 and the limit for 2007 is $50,000) 		$44,000 $45,000
Annual Compensation Limit for purposes of determining contributions and benefits (4) $220,000 $225,000
Social Security Taxable Wage Base (4) $94,200 $97,500
Key Employee Officer Threshold (3) $140,000 $145,000
Highly Compensated Employee (2) $100,000 $100,000
SIMPLE Maximum Deferral $10,000 $10,500
457 (e) (15) Limits $15,000 $15,500
IRA Limits* $4,000 $4,000
Roth IRA Limits* $4,000 $4,000
IRA & Roth IRA catch-up deferral, if over age 50 $1,000 $1,000
401(k) Roth (No salary limit, same catch-up deferral) $15,000 $15,500
Annual Gift Exclusion Maximum $12,000 $12,000

 

(1)  Participants must be at least 50 years old as of the end of the applicable year to qualify for catch-up contributions.

(2)  For purposes of the Highly Compensated Employee determination, the applicable limit determines HCEs for the following year (Ex: $100,000 or more in 2006 identifies the individuals that will be HCEs in 2007).

(3)  Effective for limitation years ending in calendar year.

(4)  Effective for plan years beginning in calendar year.

*If a participant qualifies to use more than one of these savings vehicles (Traditional IRA, Roth IRA, Non-deductible IRA), they may only save $4,000 ($5,000 if over age 50) per year, in total, among the three choices of saving vehicles.  Contributions cannot exceed the $4,000 limit, ($5,000 if over age 50), combined total per year.

 

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