2009 Limits for Benefit Plans
Each year the U.S. Government adjusts the limits for certain plans. These limits deal with compensation, contributions and other components of benefit plan administration. Here are the limits for 2009:
For Retirement Plans:
- Basic Annual Compensation Limit; $145,000
- Defined Benefit Basic Limit: $195,000
- Defined Contribution Basic Limit: $49,000
- 401(k) and 403(b) Elective Deferrals: $16,500
- 457(b) Elective Deferrals: $16,500
- 415 Compensation Limit Adjustment Factor: 1.0530
- Catchup Contribution Limit: $5,500
- Definition of Highly Compensated: $110,000
- Officer for Key Employee Definition: $160,000
- SIMPLE Plans, Elective Deferral Limit: $11,500
- SIMPLE Plans, Catch-up Limit: $2,500
For certain Welfare Plans:
- Dependent Care Limit: $5,000
- Parking Fringe Limit: $230
- Transit Pass Limit: $120
- HSA Contribution, Single: $3,000
- HSA Contribution, Family: $5,950
- HSA Minimum Deductible, Single: $1,150
- HSA Minimum Deductible, Family: $2,300
- HSA Maximum Out-of-pocket, Single: $5,800
- HSA Maximum Out-of-pocket, Family: $11,600
Also, the Social Security Wage Base has been increased to $106,800. The Federal Standard Deductions and Exemptions have been increased to $11,400 for married filing jointly, $8,350 for head of household and $5,700 for single.
Finally a random thought in the turbulent economy: investing is a lot like fantasy football. If a player under-performs and you trade him or dump him, inevitably he has a great week after your get rid of him. Plus you pay the cost of the transaction to pick the new player who inevitably does not do as well as soon as he is on your team. The same can be said about your retirement portfolio. Chances are dumping investments now and picking "safer" investments will end up with you watching on the sidelines as your prior investment improves and your new one loses steam. So unless you absolutely cannot hold your investments, the best strategy may be just to play with your current team.
