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HR-System.com
American Administration Services Company
Plan Limitations for
2004
2001-2005 Plan
Limitations
|
Type of Limitation
|
|
|
2003
|
2002
|
2001
|
|
Elective Deferrals (401(k) and 403(b); not including adjustments
and catch-ups)
|
$14,000
|
$13,000
|
$12,000
|
$11,000
|
$10,500
|
|
457(b)(2) and 457(c)(1) Limits (not including catch-ups)
|
$14,000
|
$13,000
|
$12,000
|
$11,000
|
$8,500
|
Section 414(v) Catch-Up Deferrals to 401(k), 403(b), 457(b), or
SARSEP Plans 3/
|
$4,000
|
$3,000
|
$2,000
|
$1,000
|
N/A
|
|
Defined Benefit Plans
|
$170,000
|
$165,000
|
$160,000
|
$160,000
|
$140,000
|
|
Defined Contribution Plans
|
$42,000
|
$41,000
|
$40,000
|
$40,000
|
$35,000
|
|
Annual Compensation Limit
|
$210,000
|
$205,000
|
$200,000
|
$200,000
|
$170,000
|
|
Annual Compensation Limit for Grandfathered Participants in
Governmental Plans Which Followed 401(a)(17) Limits (With Indexing) on
July 1, 1993
|
$315,000
|
$305,000
|
$300,000
|
$295,000
|
$285,000
|
|
Highly Compensated Employee
|
$95,000
|
$90,000
|
$90,000
|
$90,000
|
$85,000
|
|
SIMPLE Retirement Accounts
|
$10,000
|
$9,000
|
$8,000
|
$7,000
|
$6,500
|
|
SEP Coverage
|
$450
|
$450
|
$450
|
$450
|
$450
|
|
SEP Compensation
|
$210,000
|
$205,000
|
$200,000
|
$200,000
|
$170,000
|
|
Tax Credit ESOP Maximum Balance
|
$850,000
|
$830,000
|
$810,000
|
$800,000
|
$780,000
|
|
Amount for Lengthening of 5-Year ESOP Period
|
$170,000
|
$165,000
|
$160,000
|
$160,000
|
$155,000
|
|
Excess Distribution Threshold
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
|
Qualified Police and Firefighters' DB Benefit Limit
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
|
Income Subject to Social Security Tax
|
$90,000
|
$87,900
|
$87,000
|
$84,900
|
$80,400
|
|
FICA Tax for employees and employers
|
7.65%
|
7.65%
|
7.65%
|
7.65%
|
7.65%
|
|
Social Security Tax for employees and employers
|
6.2%
|
6.2%
|
6.2%
|
6.2%
|
6.2%
|
|
Medicare Tax for employees and employers
|
1.45%
|
1.45%
|
1.45%
|
1.45%
|
1.45%
|
|
FICA Tax for self-employed workers
|
15.3%
|
15.3%
|
15.3%
|
15.3%
|
15.3%
|
|
Social Security Tax for self-employed workers
|
12.4%
|
12.4%
|
12.4%
|
12.4%
|
12.4%
|
|
Medicare Tax for self-employed workers
|
2.9%
|
2.9%
|
2.9%
|
2.9%
|
2.9%
|
1/
2005 limits reflect issuance of
Notice
2004-72 (November 15, 2004) and the corresponding
Social
Security Administration News Release (October 19, 2004).
2/ 2004
limits reflect issuance of
IRS
Notice 2003-73, 2003-45 I.R.B. 1017 (November 10, 2003, and the
corresponding
Social Security Administration News Release (October 16, 2003).
3/ This
number is only the catch-up available under Code section 414(v).
Code sections 457(b)(3) and 402(g) provide
separate catch-up rules, which must also be considered in appropriate cases.
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