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ARTICLE · 28 OCTOBER 2008

IRS Announces Retirement Plan COLA Adjustments For 2009

On October 16, 2008, the Internal Revenue Service issued IR 2008-118, announcing the cost-of-living adjustments applicable to retirement plan limits for 2009.

United StatesEmployment and HR

On October 16, 2008, the Internal Revenue Service issued IR 2008-118, announcing the cost-of-living adjustments applicable to retirement plan limits for 2009. Most of the limits increase for 2009, as the increase in the cost-of-living index met the statutory threshold that triggers the adjustment. A summary of the current 2008 limits and the new 2009 limits follows:

Retirement Plan Limits

 

2008

2009

Maximum Elective Deferral Limit Under 402(g)
(applicable to 401(k), 403(b) and 457(b) Plans)

$15,500

$16,500

SIMPLE Plan Salary Deferral Limit (408(p))

$10,500

$11,500

Maximum Catch-Up Contribution Limit Under 414(v)
(Plans other than SIMPLE Plans)

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