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American Administration Services Company


Plan Limitations for 2004

2001-2005  Plan Limitations

Type of Limitation
2005 1/
2004 2/
2003
2002
2001
Elective Deferrals (401(k) and 403(b); not including adjustments and catch-ups)
$14,000
$13,000
$12,000
$11,000
$10,500
457(b)(2) and 457(c)(1) Limits (not including catch-ups)
$14,000
$13,000
$12,000
$11,000
$8,500
Section 414(v) Catch-Up Deferrals to 401(k), 403(b), 457(b), or SARSEP Plans 3/
$4,000
$3,000
$2,000
$1,000
N/A
Defined Benefit Plans
$170,000
$165,000
$160,000
$160,000
$140,000
Defined Contribution Plans
$42,000
$41,000
$40,000
$40,000
$35,000
Annual Compensation Limit
$210,000
$205,000
$200,000
$200,000
$170,000
Annual Compensation Limit for Grandfathered Participants in Governmental Plans Which Followed 401(a)(17) Limits (With Indexing) on July 1, 1993
$315,000
$305,000
$300,000
$295,000
$285,000
Highly Compensated Employee
$95,000
$90,000
$90,000
$90,000
$85,000
SIMPLE Retirement Accounts
$10,000
$9,000
$8,000
$7,000
$6,500
SEP Coverage
$450
$450
$450
$450
$450
SEP Compensation
$210,000
$205,000
$200,000
$200,000
$170,000
Tax Credit ESOP Maximum Balance
$850,000
$830,000
$810,000
$800,000
$780,000
Amount for Lengthening of 5-Year ESOP Period
$170,000
$165,000
$160,000
$160,000
$155,000
Excess Distribution Threshold
N/A
N/A
N/A
N/A
N/A
Qualified Police and Firefighters' DB Benefit Limit
N/A
N/A
N/A
N/A
N/A
Income Subject to Social Security Tax
$90,000
$87,900
$87,000
$84,900
$80,400
FICA Tax for employees and employers
7.65%
7.65%
7.65%
7.65%
7.65%
Social Security Tax for employees and employers
6.2%
6.2%
6.2%
6.2%
6.2%
Medicare Tax for employees and employers
1.45%
1.45%
1.45%
1.45%
1.45%
FICA Tax for self-employed workers
15.3%
15.3%
15.3%
15.3%
15.3%
Social Security Tax for self-employed workers
12.4%
12.4%
12.4%
12.4%
12.4%
Medicare Tax for self-employed workers
2.9%
2.9%
2.9%
2.9%
2.9%

1/ 2005 limits reflect issuance of Notice 2004-72 (November 15, 2004) and the corresponding Social Security Administration News Release (October 19, 2004).

2/ 2004 limits reflect issuance of IRS Notice 2003-73, 2003-45 I.R.B. 1017 (November 10, 2003, and the corresponding Social Security Administration News Release (October 16, 2003).

3/ This number is only the catch-up available under Code section 414(v). Code sections 457(b)(3) and 402(g) provide separate catch-up rules, which must also be considered in appropriate cases.

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NEWS - "Click Here" to read the latest Employee Benefits News