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Get Saving!
By: Karla K. Maschmeier
Karla.maschmeier@wilaw.com
414.276.5000
It’s the New Year and time to continue building your retirement nest egg. Each year the IRS releases new limits on the maximum benefits for retirement plans and IRAs. Below is a chart summarizing the new limits for 2007, as well as the 2006 limits for comparison.
| 2007 | 2006 | |
| Defined Benefit Annual Benefit Limit | $180,000 | $175,000 |
| Defined Contribution Annual Additions Limit | $45,000 | $44,000 |
| Elective Deferrals | $15,500 | $15,000 |
| Catch-Up Contribution (Age 50 and older) | $5,000 | $5,000 |
| Highly Compensated Employee Compensation Test | $100,000 | $100,000 |
| Qualified Plan Maximum Compensation | $225,000 | $220,000 |
| Social Security Taxable Wage Base | $97,500 | $94,200 |
| Simple Plan Employer Limit | $10,500 | $10,000 |
| Simple Plan Catch-Up Contribution(Age 50 and Older) | $2,500 | $2,500 |
| Maximum IRA and Roth IRA Contribution | $4,000 | $4,000 |
| Catch-Up Contribution (Age 50 and Older) |
$1,000 | $1,000 |
*All information appearing in this article is for informational purposes only and is not legal advice. This article does not create an attorney-client relationship with any reader. Do not act upon any information contained in this article without seeking professional legal counsel.
