ALERT - 2009 Cost-of-Living Adjustments

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January 16, 2009

The Internal Revenue Service and the Social Security Administration have issued the inflation-adjusted amounts which affect qualified retirement plans and Social Security benefits for the year 2009.

 

 2006

 2007

 2008

 2009


§ 401(k) / 403(b)/457 Deferral Limit


$15,000

 
$15,500
 
$15,500


$16,500


SIMPLE Deferral Limit


10,000


10,500


10,500


11,500


Catch-Up Contribution Limit to a
401(k), 403(b) or 457 Plan

5,000

5,000

5,000

5,500


Catch-Up Contribution Limit to a SIMPLE Plan

2,500

2,500

2,500

2,500


Compensation Cap1


220,000


225,000


230,000


245,000


§ 415(b) Defined Benefit Annual Pension Limit


175,000


180,000


185,000


195,000


§ 415(c) Defined Contribution Annual Addition Limit


44,000


45,000


46,000


49,000


Highly Compensated Employee - Compensation Threshold

 100,000

 100,000

 105,000

 110,000


Key Employee - Compensation Threshold for Officers

140,000

145,000

150,000

160,000


Social Security Wage Base
           OASDI Rate
           Medicare Rate
           FICA


94,200
6.20%
1.45%
7.65%


97,500
6.20%
1.45%
7.65%


102,000
6.20%
1.45%
7.65%


106,800
6.20%
1.45%
7.65%


Limit on Outside Earnings to Avoid Social Security Offset
           Under Full Retirement Age2
           Over Full Retirement Age2





12,480
Unlimited





12,960
Unlimited





13,560
Unlimited





14,160
Unlimited


§132(f) Transportation Benefits
            Parking
            Vanpooling/Transit Passes



205
105



215
110



220
115



230
120


§223 Health Savings Accounts - Contribution Limits
            Single Coverage
            Family Coverage




2,700
5,450




2,850
5,650




2,900
5,800




3,000
5,950


§223 Health Savings Account -
Catch-Up Contribution Limit

700

800

900

1,000

For more information, please contact a member of Briggs and Morgan's Employee Benefits Group:

 Ira S. Friedrich  612.977.8645   ifriedrich@briggs.com
 Stephen A. Brunn  612.977.8453   sbrunn@briggs.com
 Andrea J. Lundahl  612.977.8752   alundahl@briggs.com

1 The Compensation Cap for grandfathered participants in certain governmental plans is $360,000 for 2009.

2 For persons born in 1939, Full Retirement Age is age 65 and four months. For persons born in 1940, Full Retirement Age is age 65 and six months.