Retirement plan limitations.

• Author: Josephs, Stuart R.
• Position: Tax Talk - Brief Article - Illustration

Retirement Plan Limitations IRS News Release, IR-2003-122, 10/16/03, announced 2004 retirement plan limitations. Selected 2004 and 2003 limitations are as follows: 2004 2003 Exclusion of elective deferrals regarding Sec. 401(k) and certain other plans [Sec. 402(g)(1) and (3)] $13,000 $12,000 Defined contribution plan annual addition [Sec. $41,000 $40,000 415(c)(1)(A)] Defined benefit plan annual benefit [Sec. $165,000 $160,000 415(b)(1)(A)] Annual compensation limit [Secs. 401(a)(17), 404(l), $205,000 $200,000 408(k)(3)(C) and 408(k)(6)(D)(ii)] Definition of highly compensated employee [Sec. $90,000 $90,000 414(q)(1)(B)] Dollar limitation for defining key employee in $130,000 $130,000 top-heavy plan [Sec. 416(i)(1)(A)(i)]...