2007 Benefit Plan Limits
The IRS recently announced the 2007 benefit plan contribution/benefit limits for 2007. Here they are:
| Contribution/Limit: | 2006 Limit | 2007 Limit |
| 401(k)/403(b) Contributions* | $15,000 | $15,500 |
| 457(b) Limit | $15,000 | $15,500 |
| Catch-up Contributions | $5,000 | $5,000 |
| Compensation Limit** | $220,000 | $225,000 |
| Highly Compensated Employees** | $100,000 | $100,000 |
| Key Employee Officer Compensation** | $140,000 | $145,000 |
| Maximum Annual Benefit - Defined Benefit Plan** | $175,000 | $180,000 |
| Maximum Annual Contribution - Defined Contribution Plans** | $44,000 | $45,000 |
| ESOP Limits- Dollar limit for determining lengthening of 5-year period* | $175,000 | $180,000 |
| ESOP Limits - Dollar amount for determining max. amount subject to 5-year distribution* | $885,000 | $915,000 |
| Maximum SIMPLE contribution | $10,000 | $10,500 |
| FICA Wage Base *** | $94,200 | $97,500 |
*Calendar year limitation
**For plan years beginning in the calendar year. The compensation limit and key employee officer compensation also apply for purposes of Code Section 409A.
***Calendar year limitation for FICA withholding purposes and for plan years beginning in the calendar year for retirement plan purposes.