October 16, 2008
FYI: 2009 Benefit Limit Adjustments
By Cindy Van Bogaert
Here is your latest FYI: Employee Benefits
Update from Cindy Van Bogaert, Partner and Chair of the Employee
Benefits Practice Group at Boardman Law Firm LLP.
The IRS announced its 2009 cost-of-living adjustments for pension plans in a press release dated October 16, 2008. These limits also affect some aspects of non-pension benefit plans. (See: http://www.irs.gov/newsroom/article/0,,id=187833,00.html.)
The deferral limit under Code Section 402(g) is increased from $15,500 in 2008 to $16,500 in 2009. (Catch up contributions are increased from $5,000 in 2008 to $5,500 in 2009.)
The compensation limit under Code Section
The annual addition contribution limit under Code Section 415 for individuals in
The highly compensated employee limit under Code Section
The limit used in determining key employees under Code Section 416 is increased from $150,000 in 2008 to $160,000 in 2009.
The qualified transportation monthly limits for 2009 are $120 for transit passes and $230 for parking. (See Rev. Proc. 2008-66.)
The Social Security Wage Base (maximum earnings taxable) for 2009 is $106,800. (See: http://www.ssa.gov/pressoffice/factsheets/colafacts2009.htm.)
This FYI is not legal advice. Individuals should seek advice based on their particular circumstances from their own counsel. Nothing in this FYI is intended to be used, and no information can be used, for the purpose of avoiding penalties under the Internal Revenue Code, or promoting, marketing, or recommending to another party any transaction or matter addressed in this FYI.
If you have any questions or need assistance, please contact Cindy Van Bogaert at (608) 281-7543 or Email.
Would you like to have FYI: Employee Benefits Update sent directly to your e-mail inbox? If so, please send your request, with e-mail address, to Cindy Van Bogaert at Email.