Planned Retirement Consultants
& Administrators, Inc.
Limits

2005 Dollar Limits
(Reflecting Pension Simplification)
 

Contribution and Funding Limitations

The maximum limitation for annual benefits under defined benefit plans is the

lesser of $170,000 or 100% of a participant's average compensation in high three years

 under Internal Revenue Code (IRC) Section 415(b)(1)(A)

The maximum contribution limitation for defined contribution plans

changes to the lesser of 100% of compensation or $42,000

under Internal Revenue Code (IRC) Section 415(c)(1)(A)

The maximum limitation on elective deferrals for 401(k) plans increases to $14,000

under Internal Revenue Code (IRC) Section 402(g)(1)
 

The maximum limitation on elective deferrals for 403(b) plans increases to $14,000

under Internal Revenue Code (IRC) Section 402(g)(1)
 

The maximum limitation on elective deferrals for 457b plans increases to $14,000

under Internal Revenue Code (IRC) Sections 457(e)(15)

The maximum limitation on elective catch-up deferrals increases to $4,000 for a maximum

elective deferral total of $18,000 for active participants who have attained age 50

under Internal Revenue Code (IRC) Section 414(v)(2)(B)

The maximum contribution limitation for SIMPLE plans increases to $10,000

under Internal Revenue Code (IRC) Section 408(p)(2)(E)

Compensation Limitations

The annual limit of compensation that may be taken into account increases to $210,000

under Internal Revenue Code (IRC) Section 401(a)(17)

The limitation used for determining highly compensated employees changes

to greater than 5% owner or more than $95,000

under Internal Revenue Code (IRC) Section 414(q)(1)(B)

The annual limit of compensation used to determine key employee's increases to $135,000

under Internal Revenue Code (IRC) Section 416(i)(1)(A)
 

The Social Security Wage Base increases from $87,900 to $90,000

The minimum annual limit on compensation taken into account to determine eligibility

for simplified employee pensions (SEPs) remains at $450

under Internal Revenue Code (IRC) Section 408(k)(2)(C)

The maximum annual limit on compensation taken into account for

simplified employee pensions (SEPs) increases to $210,000

under Internal Revenue Code (IRC) Section 408(k)(3)(C)

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Planned Retirement Consultants & Administrators, Inc.
located in Ridgewood, NJ.
All material is maintained by Christopher Switaj