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October 28, 1998
1999 Changes In Annual Qualified Retirement Benefits Limits
The IRS recently announced new annual qualified retirement benefit limits
for 1999. The following is a Desk Reference Summary of the most relevant limits
and how they compare with the limits for 1997 and 1998. Due to low inflation,
most limits remain unchanged for 1999.
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1997 |
1998 |
1999 |
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Dollar limit for Defined Benefit Plans |
$125,000 |
$130,000 |
$130,000 |
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Dollar limit for Defined Contribution Plans |
30,000 |
30,000 |
30,000 |
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401(k) Maximum Deferral |
9,500 |
10,000 |
10,000 |
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Social Security Taxable Wage Base |
65,400 |
68,400 |
72,600 |
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Maximum Compensation Allowable for Benefit Purposes |
160,000 |
160,000 |
160,000 |
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Maximum Compensation to Determine Highly Compensated Status
[Code Section 414(q)] |
80,000 |
80,000 |
80,000 |
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SIMPLE Maximum Deferral |
6,000 |
6,000 |
6,000 |
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403(b) Maximum Deferral |
9,500 |
10,000 |
10,000 |
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457 Maximum Deferral |
7,500 |
8,000 |
8,000 |
The Employee Benefits Alert is intended to kee readers current on
matters affecting employee benefits, and is not intended to be legal advice. If
you have any questions, please call Kathryn A. English at 412/566-1226,
Laurie S. DuChateau at 412/566-5960, John J. Kearns, III at
412/566-2075, John R. Owen, III at 412/566-6852, Paul M. Yenerall
at 412/566-1944, or any other attorney with whom you have been working.
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