HEALTHCARE: 2007 RETIREMENT PLAN LIMITS

        The IRS has announced the following cost of living adjustments for retirement plans for 2007.  The following chart compares these 2006 and 2007 limits:  

                                                                                                                   2007                  2006

Maximum Compensation Limit                                                            $225,000              $220,000

 Maximum annual addition dollar limit                                                 $ 45,000                $ 44,000

 Maximum annual addition percentage of compensation cap               100% of pay    100% of pay

 Maximum 401(k) Contribution Dollar Limit                                      $  15,500                $  15,000

 Maximum 401(k) "Catchup" Contribution*                                       $   5,000                 $   5,000

 Social Security Taxable Wage Base                                                     $ 97,500                 $ 94,200

 Maximum Percentage for Permitted Disparity                                     5.7%                      5.7%

 Defined Benefit Plan Maximum Annual Benefit                                $180,000                $175,000

         * Plan Participants who are 50 or older in 2007 who make the maximum 401(k) contribution may also make a 401(k) "catchup" contribution of $5,000 in calendar year 2007.  The "catchup" contribution does not count as part of the maximum annual addition limit.  Accordingly, in calendar year 2007, a participant in a 401(k) profit-sharing plan can make a 401(k) contribution of $15,500, a 401(k) catchup contribution of $5,000 and also receive employer contributions of up to $29,500 for a total of $50,000.

 

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