irs pension plan limits for 2009

Like2Plan · #1 (**permalink**) 10-21-2008, 05:09 AM

link to news release for IRS Announces Pension Plan Limitations for 2009

It looks like 401K's will be 16,500 for 2009
401K catch up (for folks over 50

) 5,500.

disneysteve · #2 (**permalink**) 10-21-2008, 10:26 AM

What about IRA/Roth limits? Any word on those yet?

MonkeyMama · #3 (**permalink**) 10-23-2008, 09:59 AM

The limits did not increase for 2009. $5k max/$6k if over 50.

IRS is releasing all their inflationary data for 2009 this week. IRA contributions were absent because they have not changed.

kork13 · #4 (**permalink**) 10-23-2008, 10:11 AM

Quote:

Originally Posted by MonkeyMama

The limits did not increase for 2009. $5k max/$6k if over 50.

IRS is releasing all their inflationary data for 2009 this week. IRA contributions were absent because they have not changed.

Really, I suppose that's a good thing... for the $500 increase we'd need to have inflation of 10% in just this last year, correct? that would be a major bite.... yea, it's happened, but I'd be happy for it to stay low for a while.

MonkeyMama · #5 (**permalink**) 10-23-2008, 10:15 AM

I am not sure what the formula is, but as I understand it it is the only pension/retirement item indexed to inflation that has not changed for 2009.

So yeah, I Wouldn't be surprised if it was a high inflation number like 10%.

kork13 · #6 (**permalink**) 10-23-2008, 10:41 AM

My understanding is that they will only change the IRA limit in increments of $500, so for this year, I think it would have to be around 10%.... so it'll probably (hopefully) be a few years before they need to bump it up.

simpletron · #7 (**permalink**) 10-23-2008, 12:36 PM

Quote:

For participants who separated from service before Jan. 1, 2009, the limitation for defined benefit plans under Section 415(b)(1)(B) is computed by multiplying the participant's compensation limitation, as adjusted through 2008, by 1.0530.

The limitation for defined contribution plans under Section 415(c)(1)(A) is increased from $46,000 to $49,000.

The Code provides that various other dollar amounts are to be adjusted at the same time and in the same manner as the dollar limitation of Section 415(b)(1)(A). These dollar amounts and the adjusted amounts are as follows:

according to this inflation was 5.3%. so I guess that they don't round up because 5000*1.053 is 5265.

Johansen8 · #8 (**permalink**) 10-24-2008, 02:48 AM

Quote:

Originally Posted by kork13

My understanding is that they will only change the IRA limit in increments of $500, so for this year, I think it would have to be around 10%.... so it'll probably (hopefully) be a few years before they need to bump it up.

that's what I thought

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