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In IR-2003-122, the IRS announced the limitations applicable to contributions and benefits under various employee benefit provisions of the Code for 2004, as adjusted for changes in the cost of living. The 2004 limits are as follows:
|
Item
|
2004
|
2003
|
| Maximum annual annuity payable from a tax-qualified defined benefit pension plan at age 65 |
$165,000
|
$160,000
|
| Maximum "annual addition" to a participant's account under a tax-qualified defined contribution plan |
$41,000
|
$40,000
|
| Elective Deferrals under Code Section 402(g) |
$13,000
|
$12,000
|
| SIMPLE plan elective contributions |
$9,000
|
$8,000
(2003)
|
| Section 401(a)(17) Limit on annual amount of a participant's compensation that can be taken into account for contribution or benefit purposes under a tax-qualified retirement plan |
$205,000
|
$200,000
|
| Section 401(a)(17) compensation limit with COLA adjustment |
$305,000
|
$300,000
|
| Compensation threshold for definition of "highly compensated employee" |
$90,000
|
$90,000
|
| Compensation limit for determining "key employees" for top-heavy plan purposes |
$130,000
|
$130,000
|
| Compensation limit for definition of "control employee for fringe benefit valuation purposes |
$80,000
|
$80,000
|
| Compensation limit for definition of "control employee for fringe benefit valuation purposes |
$80,000
|
$80,000
|
| ESOP five-year distribution limit |
$830,000
|
$810,000
|
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