NEWS

Increased Contribution and Benefit Limits

Contribution and benefit limits are increased:

  • Annual Limit on 401(k)/403(b)/457 elective deferrals:

    Year Limit
    2002 $11,000
    2003 $12,000
    2004 $13,000
    2005 $14,000
    2006 $15,000 (indexed in $500 increments thereafter)

  • Annual compensation limit increased from $170,000 to $200,000 in 2002, then indexed in $5000 increments thereafter.


  • Defined contribution IRC 415 limit increased to the lesser of 100% of pay or $40,000 (indexed in $1000 increments).


  • Defined benefit IRC 415 limit increased to the lesser of 100% of pay or $160,000 (indexed in $5000 increments).