IRS Notice 2006-162 provides 2007 limitations for pension plans. Here are the 2007 limits:

• Annual defined benefit plans increases from $175,000 to $180,000 (IRC §415(b)(1)(A)).
• Annual defined contribution plan increases from $44,000 to $45,000 (IRC §415(b)(1)(B)).
• 401(k) contributions increase from $15,000 to $15,500.
• Definition of highly compensated employee under IRC §414(g)(1)(B) remains at $100,000.
• Annual compensation limits under IRC §§401(a)(17), 404(l), 408(k)(3)(C), 408(k)(6)(ii) increase from $220,000 to $225,000.
• Compensation amount under IRC §408(k)(2)(C) for SEP increases from $450 to $500.
• IRC §408(p)(2)(E) limitation for SIMPLE retirement accounts increases from $10,000 to $10,500.
• IRC §457(e)(15) deferred compensation limits increase from $15,000 to $15,500.
• Catch-up contributions remain the same at $5,000 and $2,500 for IRAs.

The Social Security Administration has announced that the wage base for computing the Social Security tax (OASDI) in 2007 rises to $97,500 from $94,200 in 2006, an increase of about 3.5%.