Compensation Cap
Last Updated March 21, 2009
Definition
Maximum amount of compensation on that may be taken into consideration when determining contributions to employer sponsored retirement plans, such as SEP IRAs, SIMPLE IRAs, 403(b) arrangements, qualified plans-such as 401(k)-profit sharing and pension plans..
The compensation cap does not apply to SIMPLE IRA matching contributions
Referring Cite
IRC § 401(a)(17), IRC § 404(l)
Additional Helpful Information
Compensation cap history
|
2008 |
2007 |
2006 |
2005 |
2004 |
2003 |
2002 |
2001 |
2000 |
|
$230,000 |
$225,000 |
$220,000 |
$210,000 |
$205,000 |
$200,000 |
$200,000 |
$170,000 |
$170,000 |
|
2009 |
||||||||
|
$245,000 |
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