2006 Pension Plan Limitations, Catch-ups, and Other Amounts

2005

2006

Maximum defined contribution plan contribution

$ 42,000

$ 44,000

SEP IRA

$ 42,000

$ 44,000

Maximum §401(k) and §403(b) deferral

$ 14,000

$ 15,000

Maximum §457 deferral

$ 14,000

$ 15,000

SIMPLE

$ 10,000

$ 10,000

Definition of “highly compensated employee” under IRC §141(q)(1)(B)

$ 95,000

$ 100,000

Annual limit on annual benefit under a defined benefit plan

$170,000

$175,000

Annual compensation limit under §§401(a)(17), 404(l), 408(k)(3)(C), 408(k)(6)(D)(ii)

$210,000

$220,000

Maximum amount of earnings subject to Social Security payroll tax

$90,000

$94,200

Catch-up contribution for individuals age 50 and older with plans other than a 401(k)(11) or 408(p)

$4,000

$5,000

Catch-up contribution for individuals age 50 and older with 401(k)(11) or 408(p) plans

$2,000

$2,500