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Contribution Limits

Annual Limits for Qualified Plans

Plan Year

2000 2001 2002 2003 2004 2005 2006
401(k) Deferrals* $10,500 $10,500 $11,000
$12,000
$13,000
 $14,000

$15,000

Annual
Catch-Up Contributions — Qualified Plans 		N/A N/A $1,000
$2,000
$3,000
 $4,000

$5,000

Income Subject
to Social Security Tax		 $76,200 $80,400 $84,900
$87,000
$87,900
 $90,000 $94,200
Annual Compensation Limit $170,000 $170,000 $200,000
$200,000
$205,000
 $210,000 $220,000
Maximum SIMPLE Contribution $6,000 $6,500 $7,000
$8,000
$9,000
 $10,000

$10,000

Annual Catch-Up Contributions — SIMPLE Plans N/A N/A $500
$1,000
$1,500
 $2,000

$2,500

*This amount may be limited by plan document provisions. Consult your plan administrator for details. The deduction limits changed in 2002. The new law allows for contributions up to the lesser of 100% of compensation or $44,000 in 2006.

The IRS sets limits on contributions and other additions with respect to an individual's account in a defined contribution plan. The annual addition is the sum of 1) employer contributions, 2) employee contributions and 3) reallocated forfeitures. The annual addition may not exceed the lesser of 100% of the participant's compensation or $44,000 in 2006.

 
   
 
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