Resources

Government Limitations

 


Benefit limitations

 

 Maximum annual DB payout IRC 415 at age 62
 (from public or tax-exempt employer DB plan):
 2010  $195,000
 2009  $195,000
 2008  $185,000
 2007  $180,000
 2006  $175,000
 2005  $170,000
 2004  $165,000
 2003  $160,000
 2002  $160,000 payable at age 62 after 2001 ($5,000 index increments)
 2001  $140,000 payable at SSNRA
 2000  $135,000

 

 Maximum annual DC contribution 415(c):
 2010 $49,000
 2009 $49,000
 2008 $46,000
 2007 $45,000
 2006 $44,000
 2005 $42,000
 2004 $41,000
 2003 $40,000
 2002 $40,000 ($1,000 index increments)
 2001 $35,000
 2000 $30,000

 

 Maximum elective deferrals 401(k), 403(b), 402(g)(1):
 2010 $16,500
 2009 $16,500
 2008 $15,500
 2007 $15,500
 2006 $15,000
 2005 $14,000
 2004 $13,000
 2003 $12,000
 2002 $11,000 ($1,000 increments to $15,000 in 2006; $500 indexed thereafter)
 2001 $10,500
 2000 $10,500

 

 §401(k), 403(b) [414(v)(2)(B)(i)] catch-up for those age 50 or older:
 2010 $5,500
 2009 $5,500
 2008 $5,000
 2007 $5,000
 2006 $5,000
 2005 $4,000
 2004 $3,000
 2003 $2,000
 2002 $1,000 ($1,000 increments to $5,000 in 2006; $500 indexed thereafter)

 

 Maximum annual compensation qualified plans 401(a)(17):    
 2010 $245,000
 2009 $245,000
 2008 $230,000
 2007 $225,000
 2006 $220,000
 2005 $210,000
 2004 $205,000
 2003 $200,000
 2002 $200,000 ($5,000 index increments)                               
 2001 $170,000
 2000 $170,000

 

 §401(a)(17) compensation limit for governmental plans grandfathering old limit:
 2010 $360,000
 2009 $360,000
 2008 $345,000
 2007 $335,000
 2006 $325,000
 2005 $315,000
 2004 $305,000
 2003 $300,000
 2002 $295,000 ($5,000 index increments)                                                              
 2001 $285,000
 2000 $275,000

 

 HCE threshold 414(q)(1)(B):
 2010 $110,000
 2009 $110,000
 2008 $105,000
 2007 $100,000                            
 2006 $100,000
 2005 $95,000
 2004 $90,000
 2003 $90,000
 2002 $90,000
 2001 $85,000
 2000 $85,000

 


Social Security limitations

 

 Wage base for Social Security tax:
 2010 $106,800
 2009 $106,800
 2008 $102,000
 2007 $97,500
 2006 $94,200                                      
 2005 $90,000
 2004 $87,900
 2003 $87,000
 2002 $84,900
 2001 $80,400
 2000 $76,200

 

 Social Security COLA increase (effective for benefit increases beginning in this year):
 2010 0.0%
 2009 5.8%                                                                                                                       
 2008 2.3%
 2007 3.3%
 2006 4.1%
 2005 2.7%      
 2004 2.1%
 2003 1.4%
 2002 2.6%
 2001 3.5%
 2000 2.5%

 

 Social Security average annual wage without indexing (applies to 2 years later):
 2008 $41,334.97                                                                                                         
 2007 $40,405.48
 2006 $38,651.41                                                                                                         
 2005 $36,952.94
 2004 $35,648.55
 2003 $34,064.95
 2002 $33,252,09
 2001 $32,921.92
 2000 $32,154.82

 

 PIA formula bend points (90% / 32% / 15%):
 2010 $761,  $4,586
 2009 $744,  $4,483
 2008 $711,  $4,288
 2007 $680,  $4,100                                                 
 2006 $656,  $3,955
 2005 $627,  $3,779
 2004 $612,  $3,689
 2003 $606,  $3,653
 2002 $592,  $3,567
 2001 $561,  $3,381
 2000 $531,  $3,202

 

 PIA family benefit  bend points (1st / 2nd / 3rd):
 2010 $972,  $1,403,  $1,830
 2009 $950,  $1,372,  $1,789                              
 2008 $909,  $1,312,  $1,711
 2007 $869,  $1,255,  $1,636
 2006 $838,  $1,210,  $1,578
 2005 $801,  $1,156,  $1,508
 2004 $782,  $1,129,  $1,472
 2003 $774,  $1,118,  $1,458
 2002 $756,  $1,092,  $1,424
 2001 $717,  $1,034,  $1,349
 2000 $679,  $980,  $1,278

 

 Maximum Social Security benefit for retirement at 65 in January
 2010 $2,191/month
 2009 $2,172/month                                                                         
 2008 $2,030/month
 2007 $1,998/month
 2006 $1,961/month
 2005 $1,874/month
 2004 $1,748/month
 2003 $1,721/month
 2002 $1,660/month
 2001 $1,538/month
 2000 $1,435/month

 

 Social Security Annual Earnings test:
 2010 > 66 - no limit; < 66 - $14,160 / $37,680
 2009 > 66 - no limit; < 66 - $14,160 / $37,680
 2008 > 66 - no limit; < 66 - $13,560 / $36,120
 2007 > = 65 / 10 months - no limit; < 65 / 10 months = $12,960 / $34,440
 2006 > = 65 / 8 months - no limit; < 65 / 8 months = $12,480 / $33,240
 2005 > = 65 / 6 months - no limit; < 65 / 6 months = $12,000 /$31,800
 2004 > = 65 / 4 months - no limit; <65 / 4 months= $11,640 /$31,080
 2003 > = 65 / 2 months - no limit; < 65 / 2 months = $11,520 /$30,720
 2002 > = 65 - no limit; < 65 = $11,280 /$30,000
 2001 > = 65 - no limit; < 65= $10,680 /$25,000
 2000 > = 65 - no limit; < 65 = $10,080 /$17,000

 

 Maximum Social Security Withholding
 2010 $6,621.60
 2009 $6,621.60
 2008 $6,324.00
 2007 $6,045.00                                  
 2006 $5,840.40
 2005 $5,580.00
 2004 $5,449.80
 2003 $5,394.00
 2002 $5,263.80
 2001 $4,984.80
 2000 $4,724.40

 

 FICA (employee tax rate)
 Social Security/Medicare(HI)/Total)
 2000-2010 6.20% / 1.45% / 7.65%   

 

 SECA (self-employed tax rate)
 2000-2010 15.3%                             

 

 Wages for 1/4 coverage
 2010 $1,120
 2009 $1,090
 2008 $1,050
 2007 $1,000
 2006 $970
 2005 $920
 2004 $900                         
 2003 $890
 2002 $870
 2001 $830
 2000 $780

 


Medicare limitations

 

 Medicare Part A Deductible
 (Inpatient hospital care, skilled nursing facilities and some home health care)
 2010 $1,100
 2009 $1,068
 2008 $1,024
 2007 $992                                                                                                                   
 2006 $952
 2005 $912
 2004 $876
 2003 $840
 2002 $812
 2001 $792
 2000 $776

 

 Medicare Part B Mo. Premium
 (physician services and outpatient hospital services)
 Starting 2007 higher income beneficiaries pay a higher premium
 2010 $96.40
 2009 $96.40                                                                                          
 2008 $96.40
 2007 $93.50
 2006 $88.50
 2005 $78.20
 2004 $66.60
 2003 $58.70
 2002 $54.00
 2001 $50.00
 2000 $45.50

 


PBGC limitations

 

 PBGC Monthly/Annual Max Guarantee (S/E) at age 65
 2010 $4,500.00 / $54,000.00
 2009 $4,500.00 / $54,000.00                                                    
 2008 $4,312.50 / $51,750.00
 2007 $4,125.00 / $49,500.00
 2006 $3,971.59 / $47,659.08
 2005 $3,801.14 / $45,613.68
 2004 $3,698.86 / $44,386.32
 2003 $3,664.77 / $43,977.24
 2002 $3,579.55 / $42,954.60
 2001 $3,392.05 / $40,704.60
 2000 $3,221.59 / $38,659.08

 

 PBGC Monthly Max Guarantee (M/E)
 Pre 12/18/2000 $16.25 / month = $5,850 30 year pension 
 Post 12/18/2000
 (for any plan that hadn't
 received PBGC assistance
 within a one-year period
 ending on 12/21/2000)
$35.75 / month = $12,870 30 year pension                        



 

 

Sources: Internal Revenue Service, Department of Treasury, Social Security Administration, Medicare, Pension Benefit Guaranty Corporation

 
 

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