The Internal Revenue Code provides dollar limitations on benefits and contributions of qualified retirement plans. It also requires the IRS to adjust these limits for cost‑of‑living increases on an annual basis.

The IRS recently announced the pension plan limitation changes for 2008.* 

Here are the amounts (some remain unchanged):

Annual Qualified Plan Limits	2008	2007
Defined contribution plan dollar limit on additions (Section 415(c)(1)(A))	$ 46,000	$ 45,000
Defined benefit plan limit on benefits  (Section 415(b)(1)(A))	$185,000	$180,000
Maximum compensation used to determine contributions	$230,000	$225,000
401(k), SARSEP, 403(b) Plan Deferrals (Section 402(g)) & 457 Plan deferrals (Section 457(b)(2))	$ 15,500	$15,500
401(k), 403(b), 457 & SARSEP additional "catch-up" contributions for employees age 50 and older	$  5,000	$ 5,000
SIMPLE deferrals (Section 408(p)(2)(A))	$ 10,500	$10,500
Simple additional "catch-up" contributions for employees age 50 and older	$  2,500	$ 2,500
The dollar amount under Section 409(o)(1)(C)(ii) to determine the maximum account balance in an employee stock ownership plan subject to a 5‑year distribution period, and the amount used to determine the lengthening of the 5‑year distribution period	$935,000/ $185,000	$915,000/ $180,000
Compensation defining highly compensated employee (Section 414(q)(1)(B))	$105,000	$100,000
Compensation defining key employee (officer)	$150,000	$145,000
The compensation amounts under Section 1.61‑21(f)(5)(i) of the Income Tax Regulations concerning the definition of  "control employee" for fringe benefit valuation purposes	$ 90,000	$ 90,000
Compensation triggering Simplified Employee Pension (SEP) contribution requirement (Section 408(k)(2)(c))	$      500	$       500

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