Pension Plan Limits For The Tax Year 2004

On October 16, 2003, the IRS announced (Release No: IR-2003-122) the retirement plan limits that are effective on January 1, 2004.

Many of the pension plan limitations will change for 2004. For most of the limitations, the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment. Furthermore, several limitations, set by the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), are scheduled to increase at the beginning of 2004.

401K RELATED LIMITS
401k Elective Deferrals  $13,000
Annual Defined Contribution Limit $41,000
Annual Compensation Limit $205,000
Catch-Up Contribution Limit $3,000
Highly Compensated Employees  $90,000*
 
NON 401K RELATED LIMITS
403(b)/457 Elective Deferrals  $13,000
SIMPLE Employee Deferrals $9,000
SIMPLE Catch-Up Deferral $1,500
SEP Minimum Compensation $450*
SEP Annual Compensation Limit $205,000
Social Security Wage Base $87,900

* Unchanged from 2003.

IRS announcement #2003-122 can located at http://www.401khelpcenter.com/IRS/pr_irs_101603.html.

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TAX OR INVESTMENT ADVICE.