2009 Retirement Plan Increases
The 2009 cost-of-living adjustments for pension and retirement plans are as follows:
401(k) and 403(b). The limitation on the exclusion for elective deferrals under IRC §402(g)(3) will increase from $15,500 to $16,500. This limitation affects elective deferrals to various plans, including 401(k) plans, and 403(b) annuities.
Deferred compensation plans. The limit on deferrals to IRC §457 deferred compensation plans of state and local governments and tax-exempt organizations will increase from $15,500 to $16,500.
SIMPLE salary deferrals. The maximum amount of compensation that an employee/participant may elect to defer to a SIMPLE plan will increase from $10,500 to $11,500.
Catch-up contributions. The dollar limitation for catch-up contributions to an applicable deferred plan for individuals age 50 or over will increase from $5,000 to $5,500. The amount for catch-up contributions under SIMPLE plans will remain at $2,500 in 2009.
