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Saturday, October 20, 2007

INFLATION ADJUSTMENTS TO PENSION CONTRIBUTION LIMITS

2008 adjustments to pension contribution, benefit and computation limits have been released. While many inflation adjustments are in fact unchanged, here are some changes that are of interest:

-The limitation on the annual benefit under a defined benefit plan increases from $180,000 to $185,000.

-The limit on the annual additions to a participant's defined contribution plan account increases from $45,000 to $46,000.

-The maximum amount of annual compensation that can be taken into account for various qualified plan purposes increases from $225,000 to $230,000.

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