QUICK TAX FACTS

RETIREMENT PLAN CONTRIBUTIONS
EGTRRA 2001, JCWAA 2002

Contribution limits to defined contribution plans (including money purchase and profit sharing):

Year	Amount
2003	$40,000
2004	$41,000
2005	$42,000
2006	$44,000
2007	$45,000

 

Compensation wage base for contributions (self-employed person must adjust compensation for ½ self-employment tax and contribution amount):

Year	Amount
2003	$200,000
2004	205,000
2005	210,000
2006	220,000
2007	225,000

 

Elective Deferral Limits:  plans 401(k), 403(b), 457(b) [Sec 457 twice applicable limit in 3 years prior to retirement]:

Year	Amount
2003	$12,000
2004	13,000
2005	14,000
2006	15,000
2007	15,500

 

Catch-up deferrals and contributions may be made each year by persons age 50 or older.  Per JCWAA 2002, they may be made any time during the year age 50 is reached:

Year	401(k), 403(b), 457(b), salary reduction SEP	Simple plans	IRA
2003	$2,000	$1,000	$500
2004	3,000	1,500	500
2005	4,000	2,000	500
2006	5,000	2,500	1,000
2007	5,000	2,500	1,000

 

The information provided in this "Quick Tax Facts" section is intended as a general guideline only. For the most detailed and up-to-date information, contact us at 518-783-7200, or visit www.irs.gov.

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