Retirement Plan Contribution Limits
How much money do you need to invest this year to help secure your financial future? The following table, which summarizes changes in dollar limits for retirement plans for the 2009 tax year, may help you determine how much retirement money you should save this year. Social Security and Medicare withholding and tax rates are also included for your reference.
| Description |
2008 |
Increase |
2009 |
| 403(b) Employee Elective Contribution Limit1 |
$15,500 |
$1,000 |
$16,500 |
| 403(b) Age 50 Catch-up Contribution Limit1 |
$5,000 |
$500 |
$5,500 |
| 403(b) 15 Years of Service Catch-up Contribution2 |
$3,000 |
--- |
$3,000 |
| Potential Total of All 403(b) Contributions |
$23,500 |
$1,500 |
$25,000 |
| 457(b) Contribution Limit |
$15,500 |
$1,000 |
$16,500 |
| 457(b) Age 50 Catch-up Contribution Limit3 |
$5,000 |
$500 |
$5,500 |
| SIMPLE Employee Elective Contribution Limit1 |
$10,500 |
$1,000 |
$11,500 |
| SIMPLE Age 50 Catch-up Contribution Limit1 |
$2,500 |
--- |
$2,500 |
| 401(k) Employee Elective Contribution Limit1,4 |
$15,500 |
$1,000 |
$16,500 |
| 401(k) Age 50 Catch-up Contribution Limit1 |
$5,000 |
$500 |
$5,500 |
| Defined Contribution Overall Limit |
$46,000 |
$3,000 |
$49,000 |
| Defined Benefit Overall Limit |
$185,000 |
$10,000 |
$195,000 |
| Highly Compensated Threshold |
$105,000 |
$5,000 |
$110,000 |
| Qualified Plan Compensation Limit |
$230,000 |
$15,000 |
$245,000 |
| Social Security Wage Base |
$102,000 |
$4,800 |
$106,800 |
| Withholding & Tax Rates |
| Description |
2008 |
Increase |
2009 |
| Social Security Withholding Rate |
6.2% |
--- |
6.2% |
| Medicare Withholding Rate |
1.45% |
--- |
1.45% |
| Social Security Tax Rate for Self-Employed Individuals |
12.4% |
--- |
12.4% |
| Medicare Tax Rate for Self-Employed Individuals |
2.9% |
--- |
2.9% |
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