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Pension Plan limits for 2008


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Guest LSULLIVAN
Posted

Does anyone know if these limits are posted anywhere yet?

Posted

Not yet. Perhaps next week.

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

Posted

But we know what they are going to be. Which amount are you interested in?

Guest LSULLIVAN
Posted
But we know what they are going to be. Which amount are you interested in?

401k deferral and catch up

Posted

401a17 compensation and 415 DC-plan benefit accrual limits would also be useful to know.

John Simmons

johnsimmonslaw@gmail.com

Note to Readers: For you, I'm a stranger posting on a bulletin board. Posts here should not be given the same weight as personalized advice from a professional who knows or can learn all the facts of your situation.

Posted

Mike your crystal ball must be better than mine. But I sort of agree, unless the numbers for september are off the charts the limits should be the same as 2007 for K and M.

JanetM CPA, MBA

Posted

401(k) Deferral for 2007 was $15,500 and it is highly likely to be the same for 2008, unless inflation in the one month period ending 9/30/2007 was an annualized rate of about 39%.

The catch up limitation will remain $5,000 until we have about 12% inflation on the index as of August 2007. For that to happen in the one month period ending 9/30/2007 would be impossible.

401(a)(17) will most likely be $230,000. Here, we only need an increase of about 1.2% for the one month period ending 9/30/2007 to see it increase to $235,000, so that is definitely a possibility, although still unlikely. That would translate to an annual inflation rate of about 15% so it isn't likely, but is possible.

The DC 415 limit is based on the same factors as the 401(a)(17) limit so we ARE going to increase to $46,000, and if the 401(a)(17) limit goes up to $235,000 it will be $47,000.

The DB limit will be $185,000 unless things for the month of September go completely haywire.

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