2009 Cost-of-Living Adjustments
The Internal Revenue Service and the Social Security Administration have published cost-of-living adjustments for 2009. The new plan limits, effective for plan years beginning on or after January 1, 2009, and the Social Security amounts effective for calendar year 2009, are as follows:
Plan Limits
Maximum annual employee 401(k) salary deferrals
New Limit $16,500
Old Limit $15,500
Maximum annual “catch-up contributions”
New Limit $5,500
Old Limit $5,000
Maximum annual pension under defined benefit plan
New Limit $195,000
Old Limit $185,000
Maximum annual additions to an individual's defined contribution plan account
New Limit $49,000
Old Limit $46,000
Maximum includable annual compensation
New Limit $245,000
Old Limit $230,000
Compensation used in determining Highly Compensated Employees
New Limit $110,000
Old Limit $105,000
Minimum annual compensation level mandating inclusion in Simplified Employee Pensions
New Limit $550
Old Limit $500
Employee Stock Ownership Plan (ESOP) amount that extends 5-year distribution period
New Limit $985,000
Old Limit $935,000
Social Security Amounts
OASDI wage base
New Amount $106,800
Old Amount $102,000
HI wage base
New Amount No Limit
Old Amount No Limit
Benefit Payment COLA
New Amount 5.8%
Old Amount 2.3%
Earnings Test* (Under full retirement age)
New Amount $14,160
Old Amount $13,560
Earnings Test* (Year individual reaches retirement age)
New Amount $37,680
Old Amount $36,120
* There is no limit on earnings beginning the month an individual attains full retirement age.
