Tax Tip

Retirement Plan Limits Increased for 2007

If possible, most of us want to put away as much as we can for our retirement years. The following dollar limits for retirement plans have been increased for 2007 by cost of living adjustments or legislative changes. The 2005 and 2006 amounts are shown for comparison purposes.

	*2007*	*2006*	*2005*

*Traditional and Roth IRAs*	*$4,000*	*$4,000*	*$4,000*
IRA Catch-up contribution*	*$1,000*	*$1000*	*$500*
*401(k) and 403(b) Deferral Limit*	*$15,500*	*$15,000*	*$14,000*
401(k), 403(b) 457 Catch-up Contribution Limit*	*$5,000*	*$5,000*	*$4,000*
*SIMPLE Deferral Limit*	*$10,500*	*$10,000*	*$10,000*
SIMPLE Catch-up Contribution Limit*	*$2,500*	*$2,500*	*$2,000*
*Ann*ual Compensation Limit for Qualified Plans	*$225,000*	*$220,000*	*$210,000*
*Defined Benefit Plan Annual Benefit Limit*	*$180,000*	*$175,000*	*$170,000*
*Defined Contribution Plan Annual Addition Limit*	*$45,000*	*$44,000*	*$42,000*
*Dollar Limit for Highly Compensated Employees*	*$100,000*	*$100,000*	*$95,000*
*Dollar Limit for Key Employees*	*$145,000*	*$140,000*	*$135,000*
*457 Deferral Limit*	*$15,500*	*$15,000*	*$14,000*
*Social Security Wage Base*	*$97,500*	*$94,200*	*$90,000*

*Catch-up contributions available to individuals age 50 and older.

To see the last posted tax tip click here.

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