IRS Announces 2010 Retirement & Other Benefit Plan Limits
The Internal Revenue Service recently announced its 2010 adjustments and limits for retirement plans and other benefits. As illustrated below, few limits were changed from 2009. Limits of particular interest to Moreton & Company clients are listed below:
| Retirement & Saving Plan Contributions | 2009 | 2010 |
| 401(k)/403(b) Contributions | $16,500 | $16,500 |
| 457(b) Limit | $16,500 | $16,500 |
| Catch-up Contributions | $5,500 | $5,500 |
| Compensation Limit | $245,000 | $245,000 |
| Highly Compensated Employees | $110,000 | $110,000 |
| Key Employee Officer Compensation | $160,000 | $160,000 |
| Maximum Annual Benefit Defined Benefit Plan | $195,000 | $195,000 |
| Maximum Annual Contribution Defined Contribution Plan | $49,000 | $49,000 |
| Maximum SIMPLE contribution | $11,500 | $11,500 |
| FICA Wage Base | $106,800 | $106,800 |
| Personal Income Tax Exemption (income limit on qualifying relative dependent under Code §152) |
$3,650 | $3,650 |
| ESOP Limits | ||
| Dollar limit for determining lengthening of 5-year period | $195,000 | $195,000 |
| Dollar amount for determining max. amount subject to 5-year distribution | $985,000 | $985,000 |
| 219(g)(3)(B)(i) Income Limit for Traditional IRA Deductible Contributions | ||
| Taxpayers filing joint return | $89,000 | $89,000 |
| For spouse if spouse is not an active participant | $166,000 | $167,000 |
| Married taxpayer filing separately | $0 | $0 |
| All other taxpayers | $55,000 | $56,000 |
| 408A(c)(3)(C) Income Limit for Roth IRA Contributions | ||
| Taxpayers filing joint return | $166,000 | $167,000 |
| Married taxpayers filing separately | $0 | $0 |
| All other taxpayers | $105,000 | $105,000 |
| Health Savings Accounts (HSA) | 2009 | 2010 |
| High deductible health plan (HDHP) minimum annual deductible | ||
| Individual coverage | $1,150 | $1,200 |
| Family coverage | $2,300 | $2,400 |
| HDHP maximum out-of-pocket limit | ||
| Individual coverage | $5,800 | $5,950 |
| Family coverage | $11,600 | $11,900 |
| HSA monthly contribution–1/12 lesser of annual deductible or statutory limit | ||
| Individual coverage | $3,000 | $3,050 |
| Family coverage | $5,950 | $6,150 |
| Catch-up contributions | ||
| Age 55 or older | $1,000 | $1,000 |
| Qualified Transportation Fringe Benefits | 2009 | 2010 |
| Monthly limit for transportation in a commuter highway vehicle or transit pass |
$120 (increased to $230 by the stimulus bill) |
$230 |
| Monthly limit for qualified parking | $230 | $230 |
| Monthly limit for bicycle commuters | $20 | $20 |