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IRS issues 2009 retirement plan COLA numbers

Yesterday the IRS issued IR-2008-118, which contains the cost-of-living adjustments applicable to retirement plans in 2009. Some of the increases for 2009 are fairly significant. Here are some of the new numbers:
1. The Section 401(a)(17) and SEP compensation limit increases to $245,000, up from $230,000.
2. The elective deferral limit for 401(k), 403(b), and 457(b) plans increases to $16,500, up from $15,500
3. The age 50 catch-up contribution limit for qualified plans, 403(b)s, and governmental 457(b) plans increases to $5,500, up from $5,000 (the catch-up limit for SIMPLE plans remains at $2,500)
4. The “highly compensated employee” threshold increases to $110,000, up from $105,000; and the top-heavy “key employee” threshold increases to $160,000, up from $150,000.
5. The defined contribution plan annual additions limit (Section 415) increases to $49,000, up from $46,000
6. The defined benefit annual benefit limit (Section 415) increases to $195,000, up from $185,000
7. The elective deferral limit applicable to SIMPLE plans increases to $11,500, up from $10,500
8. The Social Security taxable wage base increases to $106,800, up from $102,000

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