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CLIENT ALERT
For additional information contact:
Andrea Kriznauski
Marketing Coordinator
akriznauski@untracht.com
October 28, 2005
Qualified Plan Limits for Plan Years Beginning in 2005 and 2006
| Qualified Plan Limits |
| Limit |
2006 |
2005 |
| Salary Deferral Limits |
| 402(g) Annual Limit |
| 401(k), 403(b) & 457 Plans |
$ 15,000 |
$ 14,000 |
| Simple IRA & Simple 401k |
$ 10,000 |
$ 10,000 |
| IRA & Roth IRA |
$ 4,000 |
$ 4,000 |
| Age 50 & Up Catch-Up Contributions |
| 401(k), 403(b) & 457 Plans |
$ 5,000 |
$ 4,000 |
| Simple IRA & Simple 401k |
$ 2,500 |
$ 2,000 |
| IRA & Roth IRA |
$ 1,000 |
$ 500 |
| Maximum Total Annual Benefit / Contributions |
| DB - Annual Benefit |
$ 175,000 |
$ 170,000 |
| DC - Annual Contributions |
$ 44,000 or 100% of Comp (lesser of) |
$ 42,000 or 100% of Comp (lesser of) |
| Maximum Comp. Limit (to calculate contributions) |
$ 220,000 |
$ 210,000 |
| Maximum Deduction to PSP |
25% of Eligible Comp. |
25% of Eligible Comp. |
| Other Plan Limits |
| Highly Compensated Employee |
$ 100,000 |
$ 95,000 |
| SEP Annual Comp. Floor for Eligibility |
$ 450 |
$ 450 |
| Social Security |
| Taxable Wage Base / Covered Comp. Limit |
$ 94,200 |
$ 90,000 |
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