| |
 What
is a "Qualified" Retirement Plan?
A “qualified” retirement
plan is one that is described in Section 401(a) of the Internal
Revenue Code. Simply, if
a plan is not subject to the rules of Section 401(a), it
is not
a qualified plan. Common types of qualified plans are defined
benefit plans, money purchase plans and profit sharing (including
401(k)) plans.
Generally speaking, if a plan is qualified,
contributions are not subject to tax until the money is withdrawn
from
the plan
and any investment earnings from those contributions are
tax-deferred as long as they remain in the plan. Furthermore,
any contributions
made by the Employer are tax deductible.
What is a Summary
Plan Description?
A Summary Plan Description is a just that,
a summary of the provisions of a plan. This document is prepared
for
distribution
to all
employees eligible to participate in the plan. It will
include the major provisions of the plan, including
but not limited
to, vesting schedules for employer contributions, distribution
rules,
loan provisions (if applicable) and other rights and
benefits under the plan.
What are the Pension Plan Limits
for 2007, 2008, 2009, 2010, and
2011 Plan Years?
| |
2007 |
2008 |
2009 |
2010 |
2011 |
401(k) Elective Deferral Limitation
(salary deferral): |
$15,500 |
$15,500 |
$16,500 |
$16,500 |
$16,500 |
Catch-up 401(k) Contribution Limitation
for participants over 50 yrs old: |
$5,000 |
$5,000 |
$5,500 |
$5,500 |
$5,500 |
Annual Defined Contribution (DC)
Limitation (exclusive of catch-up): |
$45,000 |
$46,000 |
$49,000 |
$49,000 |
$49,000 |
Annual Limitation on Considered
Compensation: |
$225,000 |
$230,000 |
$245,000 |
$245,000 |
$245,000 |
Highly Compensated Employee
Threshold for non-owners: |
$100,000 |
$105,000 |
$110,000 |
$110,000 |
$110,000 |
Other Limitations: |
|
|
|
Social Security Wage Base
|
$97,500 |
$102,000 |
$106,800 |
$106,800 |
$106,800 |
403(b)/457 Elective Deferrals |
$15,500 |
$15,500 |
$16,500 |
$16,500 |
$16,500 |
SIMPLE Employee Deferrals |
$10,500 |
$10,500 |
$11,500 |
$11,500 |
$11,500 |
SIMPLE Catch-Up Deferral |
$2,500 |
$2,500 |
$2,500 |
$2,500 |
$2,500 |
If you would like more information on 401(k) investing, please
visit the following link to the NASD website:
http://www.nasd.com/Investor/Smart/401k/index.html
Smart 401(k) Investing by the NASD
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