401(k) Max contribution

Dutch2

Didn't I read that the max contribution for 2007 is $15,500?
Thanks,

NeedCoffee

Dutch, you are correct. If you would like a file that has a description of the 2007 IRS limit changes, please e-mail me at [email]shulsey@howdyhonda.com[/email]

E Wart

Limit's for 2006 vs 2007

Compensation limit for allocating employer and employee contributions (and any reallocated forfeitures) 1
$220,000 2006
$225,000-2007

Defined benefit maximum annual benefit
$175,000-2006
$180,000-2007

Defined contribution maximum annual addition (excluding 401(k) catch-up contributions)2
$44,000-2006
$ 45,000-2007

Key employee top-heavy plan
$140,000-2006
$ 145,000-2007

Maximum 401(k) deferral contribution limit3
$15,000-2006
$ 15,500-2007

Maximum 401(k) deferral catch-up contribution limit for participants older than 50 3
$5,000-2006
$ 5,000-2007

Highly compensated employees
$100,000-2006
$ 100,000-2007

Social Security taxable wage base (FICA) 1,4
$94,200-2006
$ 97,500-2007




1 This is the limit in effect for the plan year that begins in the applicable calendar year.

2 This is the limit in effect for the limitation year that ends in the applicable calendar year.

3 This limit is based on the calendar year.

4 The FICA limit for purposes of withholding the old age survivor and disability insurance and hospital insurance amounts from the employee’s compensation should be based on the calendar limit in effect on the pay date.

Please pass along this information to the appropriate people in your company. It's especially important for individuals in charge of payroll systems to be aware of these changes should they need to make adjustments to current limits.





E Wart