FYI: 2010 IRS and Social Security Limits for Benefit Plans
By Cindy Van Bogaert
October 16, 2009
Here is your latest FYI: Employee Benefits Update from Cindy Van Bogaert, Partner and Chair of the Employee Benefits Practice Group at Boardman Law Firm LLP.
The IRS announced its 2010 cost-of-living adjustments for pension plans in a release dated October 15, 2009. These limits also affect some aspects of non-pension benefit plans. (See: http://www.irs.gov/newsroom/article/0,,id=214321,00.html)
Some of the limits covered in the announcement include:
- The deferral limit under Code Section 402(g) is unchanged at $16,500 in 2010. (Catch up contributions are unchanged at $5,500 in 2010.)
- The compensation limit under Code Section 401(a)(17) is unchanged at $245,000 in 2010.
- The annual addition contribution limit under Code Section 415 for individuals in 401(k) plans is unchanged at $49,000 in 2010.
- The highly compensated employee limit under Code Section 414(q) is unchanged at $110,000 in 2010.
- The limit used in determining officer key employees under Code Section 416 is unchanged at $160,000 in 2010.
- The Social Security Wage Base (maximum earnings taxable) for 2010 is unchanged at $106,800. (See http://www.ssa.gov/pressoffice/factsheets/colafacts2010.htm.)
- The qualified transportation monthly limits for 2010 are $230 for transit passes and $230 for parking. (See Rev. Proc. 2009-50.)
Upcoming seminars:
- "Employee Benefits as the Economy Recovers," October 23, 2009, Bagels with Boardman series. For information and to register: click here
Please contact me if you would like more information or assistance.
This FYI is not legal advice. Individuals should seek advice based on their particular circumstances from their own counsel.
If you have any questions or need assistance, please contact Cindy Van Bogaert at (608) 283-7543 or Email.
Would you like to have FYI: Employee Benefits Update sent directly to your e-mail inbox? If so, please send your request, with e-mail address, to Cindy Van Bogaert at Email.