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The Internal Revenue
Code (IRC) provides for dollar limitations on benefits and contributions
under qualified retirement plans. It
also requires that the IRS Commissioner annually adjust these limits for
cost-of-living increases. The
following information consists of limitations on various types of
retirement plan provisions that have been inflation-adjusted for 2004.
The section of the
IRC from which the limitation is outlined is referenced in parenthesis.
If you would like more
specific information on retirement plan provisions, please contact our
office.
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2005
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2004
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401(k) and 403(b) elective
deferral limit |
14,000
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13,000
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401(k)
and 403(b) catch-up contribution limit (To qualify, must be at
least age 50 at any time during the year) |
4,000
|
3,000
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|
SIMPLE
elective deferral limit |
10,000
|
9,000
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|
SIMPLE
catch-up contribution limit (To qualify, must be at least 50 at
any time during the year) |
2,000
|
1,500
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"Compensation" limit |
210,000 |
205,000
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Maximum
defined contribution annual addition |
42,000 |
41,000
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Maximum
defined benefit annual benefit |
170,000
|
165,000
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"Highly
compensated" Compensation in the prior year exceeding |
95,000 |
90,000
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FICA
covered compensation |
90,000
|
87,900
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IRA
Taxpayers age 50 and over
|
4,500
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3,500
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IRA
Taxpayers under age 50
|
4,000 |
3,000 |
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