Section 415 of the Internal Revenue Code provides for dollar limitations on benefits and contributions under qualified retirement plans. In addition, Section 415 requires the Commissioner to annually adjust these limits for cost-of-living increases. Other limitations applicable to deferred compensation plans are also affected by these adjustments. The Economic Growth and Tax Relief Act of 2001 (EGTRRA) reset many of the statutory dollar amounts previously adjusted on an annual basis under section 415 of the Internal Revenue Code. Additionally, other new limitation amounts were added by EGTRRA. Please see our COLA Increases Table for pre-1999 dollar limitations.
|
Code
Section
|
2005
|
2004
|
2003
|
2002
|
2001
|
2000
|
1999
|
401(a)(17)/
404(l) Annual
Compensation |
$210,000 |
$205,000 |
$200,000 |
$200,000 |
$170,000 |
$170,000 |
$160,000 |
402(g)(1)
Elective
Deferrals |
14,000 |
13,000 |
12,000 |
11,000 |
10,500 |
10,500 |
10,000 |
408(k)(2)(C)
SEP Minimum
Compensation |
450 |
450 |
450 |
450 |
450 |
450 |
400 |
408(k)(3)(C)
SEP Maximum
Compensation |
210,000 |
205,000 |
200,000 |
200,000 |
170,000 |
170,000 |
160,000 |
408(p)(2)(E)
SIMPLE
Maximum
Compensation |
10,000 |
9,000 |
8,000 |
7,000 |
6,500 |
6,000 |
6,000 |
409(o)(1)(C)
ESOP Limits |
850,000
170,000 |
830,000
165,000
|
810,000
160,000
|
800,000
160,000
|
780,000
155,000
|
755,000
150,000
|
735,000
145,000
|
414(q)(1)(B)
HCE Threshold |
95,000 |
90,000 |
90,000 |
90,000 |
85,000 |
85,000 |
80,000 |
414(v)(2)(B)(i)
Catchup
Contributions |
4,000 |
3,000 |
2,000 |
1,000 |
--- |
--- |
--- |
414(v)(2)(B)(ii)
Catchup
Contributions |
2,000 |
1,500 |
1,000 |
500 |
--- |
--- |
--- |
415(b)(1)(A)
DB Limits |
170,000 |
165,000 |
160,000 |
160,000 |
140,000 |
135,000 |
130,000 |
415(c)(1)(A)
DC Limits |
42,000 |
41,000 |
40,000 |
40,000 |
35,000 |
30,000 |
30,000 |
416(i)(1)(A)(i)
Key EE |
135,000 |
130,000 |
130,000 |
130,000 |
--- |
--- |
--- |
457(c)(15)
Deferral Limits |
14,000 |
13,000 |
12,000 |
11,000 |
8,500 |
8,000 |
8,000 |
1.62-21(f)(5)(i)
Control EE |
85,000 |
80,000 |
80,000 |
80,000 |
75,000 |
75,000 |
70,000 |
1.62-21(f)(5)(iii)
Control EE |
170,000 |
156,000 |
160,000 |
160,000 |
155,000 |
150,000 |
145,000 |
| TWB |
90,000 |
87,900 |
87,000 |
84,900 |
80,400 |
76,200 |
72,600 |
|
