Pension Plan Limits


Definition of "Pension plan limits"

Rick Cranmer real estate agent
Rick Cranmer, Real Estate Agent Atlantic Shores Realty Expertise

Dollar limitations under the Internal Revenue Service code as follows:

  1. The elective annual deferral limit is $10,000.
  2. A highly compensated employee's annual compensation limit is $80,000.
  3. QUALIFIED PLANS and SIMPLIFIED EMPLOYEE PENSION (SEP) plan annual compensation limit for contributions is $160,000.
  4. SIMPLIFIED RETIREMENT ACCOUNT annual compensation limitation is $6000.
  5. SIMPLIFIED EMPLOYEE PENSION (SEP) plan annual compensation minimum is $400.
  6. State, local government, and tax-exempt organizations' annual limitation on deferrals under DEFERRED COMPENSATION PLANS is $8000.
  7. The DEFINED BENEFIT PLAN maximum annual benefit under Section 415 (b) (1) (a) is $130,000.
  8. The DEFINED CONTRIBUTION PLAN maximum annual contribution under Section 415 (c) (1) (a) is $30,000.
  9. The maximum account balance dollar amount permitted for determining the tax credit under an EMPLOYEE STOCK OPTION PLAN (ESOP) subject to a five-year period of distribution is $735,000.

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