IRS Releases 2008 Limits

The IRS has released the 2008 Inflation Adjustments, which have limited impact on Defined Contribution Plan limits. For a link to the IRS publication with the complete list of Cost Of Living Adjustments, please click on the title of the article above. Below is a summary of those impacting retirement Plans:

• The Annual Compensation limit has increased from $225,000 in 2007 to $230,000 in 2008
• The 401(k) and 403(b) limits have remained unchanged from 2007, with the maximum contribution at $15,500
• Those age 50 and over in 2008 may make Catch-Up 401(k) contributions with the limit remaining the same from 2007 at $5,000
• The Annual Contribution limit (total of all sources( has increased from $45,000 in 2007 to $46,000 in 2008
• Employee Contributions to SIMPLE plans remains at $10,500 for 2008
• The Taxable Wage Base has increased from $97,500 to $102,000

Please contact your plan administrator to determine if any of these change impact your retirement plan desgin.