401k, 403(b), 457 plans and IRA Contribution Limits

Retirement Plan Contribution Limits

Plan Limits
The Internal Revenue Code provides dollar limitations on benefits and contributions governing tax qualified plans. The Code also limits the amount of compensation that can be taken into account when computing benefits and contributions.

Eligibility Requirements
Each retirement plan below has restrictions and eligibility requirements. For example, terminated employees may not be eligible to contribute to a former employer’s 401(k) plan. In the case of certain IRA retirement plans, income thresholds may prevent an individual from participating. Consult one of our rollover specialist can help you to determine an appropriate choice based upon your unique circumstances.

401(k) Plans

	Under Age 50	Above Age 50
Individual Elective Contributions	$14,000	$18,000
Annual Contribution Limit (including employer’s contributions)	$42,000	$46,000
Highly compensated employees constitute those with:	5% or more ownership and/or $95,000 in prior year

403(b) and 457 Plans


Individual Elective Contributions	$14,000

Individual 401(k) Plan*

	Under Age 50	Above Age 50
Individual Elective Contributions	$14,000	$18,000
Annual Contribution Limit (including employer’s contributions)	$42,000	$46,000

Traditional IRA and ROTH IRA

Annual Contribution Limit for Traditional and Roth IRAs
Year	Under the age of 50	Age 50 and older*
2004	$3,000	$3,500
2005	$4,000	$4,500
2006-2007	$4,000	$5,000
2008	$5,000	$6,000
*Individuals who attain the age of 50 before the close of the taxable year may contribute an amount in excess of the basic annual contribution.

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