2008 ANNUAL BENEFIT PLAN LIMITS

Contributions and Benefits

 

2008 Limit

2007 Limit

§401(k) and §403(b) maximum elective salary deferral

 

$15,500

$15,500

SIMPLE plan maximum salary deferral

 

$10,500

$10,500

§457(e)(15) nonqualified deferred compensation plan maximum salary deferral

 

$15,500

$15,500

Catch-up (age 50 or older) in §401(k), §403(b) and §457

 

$5,000

$5,000

Catch-up (age 50 or older) for IRAs and SIMPLE Plans

 

$2,500

$2,500

Highly compensated employees (HCE) compensation limit (earned in prior year)

 

$105,000

$100,000

Maximum annual compensation for benefit purposes

 

$230,000

$225,000

Code §415 Maximums      
Ÿ   Annual defined benefit plan payout limit at age 62   $185,000 $180,000

Ÿ   Annual defined contribution plan contribution limit

 

$46,000

$45,000

Employee Stock Ownership Plans      
Exercised put option that must be distributed in 5 years   $935,000 $915,000

Incremental dollar amount for extended put option

 

$185,000

$180,000

Pension Benefit Guaranty Corporation      
Maximum guaranteed annual benefit (single employer plans)   $51,750 $49,500

Maximum guaranteed annual benefit (multiemployer plans)

 

$429 x yrs. of service

$429 x yrs. of service

Ÿ   Multiemployer      

   Ÿ   Fixed premium (per participant)

 

$9.00

$8.00

Ÿ   Single employer      
   Ÿ   Fixed premium (per participant)   $33.00 $31.00

   Ÿ   Variable premium (based on PBGC interest rates)

 

0.9% of UVB

0.9% of UVB

Social Security/Medicare

 

 

 

Social Security      
Ÿ   OASDI taxable wage base   $102,000 $97,500
Ÿ   OASDI tax rate   6.2% 6.2%
Ÿ   Maximum monthly benefit at full retirement age   $2,185 $2,116
Ÿ   Full retirement age   66 yrs. 65 yrs. 10 mos.

Ÿ   Cost of living adjustment

 

2.3%

3.3%

Maximum income without reducing Social Security retirement benefits      
Ÿ   Over SSNRA   No limit No limit
Ÿ   Year individual attains SSNRA* Annual Amount $36,120 $34,440
  Monthly Amount $3,010 $2,870
Ÿ   Years before SSNRA** Annual Amount $13,560 $12,960

 

Monthly Amount

$1,130

$1,080

Medicare Part A      
Ÿ   HI (Medicare) taxable wage base   No limit No limit
Ÿ   Medicare tax rate   1.45% 1.45%

Ÿ   Deductible

 

$1,024

$992

Medicare Part B      
Ÿ   Monthly premium   $96.40 $93.50
Ÿ   Deductible   $135 $131

* For individuals in the calendar year of their Social Security Normal Retirement Age (SSNRA), $1 in benefits will be withheld for every $3 in earnings above the limit. There is no limit on earnings beginning the month an individual attains SSNRA

** For individuals under SSNRA, $1 in benefits will be withheld for every $2 in earnings above the limit.

 

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