Thursday, December 4, 2008
The IRS has announced its cost-of-living adjustments applicable to dollar limitations for retirement plans and Social Security generally effective for Tax Year 2009 (see IR 2008-118). The limitation on annual salary deferrals into a 401(k) plan will increase from $15,500 to $16,500. Additionally, the Social Security taxable wage base will increase from $102,000 to $106,800.
Mitchell H. Rubinstein