Blogging Employee Benefits

Thresholds and Limitations

Item   2007   2006   2005   2004   2003
Social Security Wage Base   $97,500   $94,200   $90,000   $87,900   $87,000
Compensation Limit – 401(a)(17)   $225,000   $220,000   $210,000   $205,000   $200,000
Benefit Limitation – 415(b)   $180,000   $175,000   $170,000   $165,000   $160,000
Compensation-Based Limit Factor – 415   1.0334   1.0383   1.0273   1.0220   1.0159
Contribution Limitation – 415(c)   $45,000   $44,000   $42,000   $41,000   $40,000
401(k) Elective Deferral Limit – 402(g)   $15,500   $15,000   $14,000   $13,000   $12,000
401(k) Catch-Up Contributions   $5,000   $5,000   $4,000   $3,000   $2,000
Highly Compensated Employee Threshold   $100,000   $100,000   $95,000   $90,000   $90,000
Key Employee Officer Threshold   $145,000   $140,000   $135,000   $130,000   $130,000
PBGC Maximum Guaranteed Benefit   $49,500.00   $47,659.08   $45,613.68   $44,386.32   $43,977.24
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1 Comment »

  1. […] Background – Benefits under a qualified defined benefit plan are limited under IRC §415(b)(a)(A) to $175,000 for 2006, expressed in terms of a life annuity. [IRC §415(b)(2)(A)] For other forms of benefit (other than qualified joint and survivor annuities), that dollar ceiling must be adjusted to the actuarial equivalent amount. [IRC §415(b)(2)(B)] For forms of benefit other than those subject to IRC §417(e)(3), the interest rate assumption for the actuarial equivalence assumptions is limited to the greater of 5 percent or the rate specified in the plan. [IRC §415(b)(2)(E)(i)] […]

    Pingback by Pensions & Benefits Weblog » Blog Archive » 415(b)(2)(E)(ii) — February 26, 2006 @ 1:33 pm


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