IRS Announces Pension Plan Limitations for 2004
10/17/2003The Internal Revenue Service has announced the following cost-of-living adjustments applicable to dollar limitations for pension and other retirement plans for 2004:
|
2003 |
2004 |
|
|
Section 415 limit for defined benefit plans |
$160,000 |
$165,000 |
|
Section 415 limit for defined contribution plans |
40,000 |
41,000 |
|
Section 401(a)(17) limit on compensation |
200,000 |
205,000 |
|
Highly Compensated Employee threshold |
90,000 |
90,000 |
|
Section 402(g) elective deferrals |
12,000 |
13,000 |
|
Catch-Up Contributions |
2,000 |
3,000 |
|
Key Employee in top-heavy plan |
130,000 |
130,000 |
|
Section 457 limit on deferred compensation plans for state/local governments and tax-exempt organizations |
12,000 |
13,000 |
|
ESOP maximum balance subject to 5-year installments |
810,000 |
830,000 |
|
ESOP installment extension increments |
160,000 |
165,000 |
For more information regarding this subject, please contact your regular McDermott Will & Emery lawyer or Paul Compernolle at 312/984-7632 or via e-mail at pcompernolle@mwe.com.
