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The same IRS Limits for 2010
George L. Chimento
October 16, 2009
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This is a change. Generally, benefit plan limits in the Internal Revenue Code are adjusted each
year, either according to a specific statutory amount or according to an inflation index. Without a
rise in the official inflation indices, the 2010 limits which are relevant for plan sponsors were not
adjusted, and are the same as the 2009 limits.
















                                                                                   



* A person is deemed to be a "highly compensated employee" based on the compensation for the plan's
look-back year and the IRS limit in effect at the beginning of the look-back year. Generally, the prior plan
year is the look-back year. However, a plan may instead use the calendar year ending within the plan year
as the look back year.  This technique is called the calendar year election. (For a calendar year plan, this has
the effect of designating the current plan year as the look back year, which is sometimes convenient.)  
Persons who own more than 5% of a business, either in the current plan year or the look-back year, are
also highly compensated employees, regardless of compensation.

A helpful table with the historical progression of these and other limits can be found at this
link:

IRS table with all limits


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This article is provided as a courtesy and may not be relied upon as legal advice, or to avoid
taxes and penalties.  Distribution to promote, market, or recommend any arrangement or
investment to avoid or evade taxes, including penalties, is expressly forbidden.  Any
communication with the author as to its contents, does not, of itself, create a lawyer-client
relationship. Under the ethical rules applicable to lawyers in some jurisdictions, this may be
considered advertising.
  2010    
 2009
SS Taxable wage base  
 $106,800
 $106,800
Defined contribution 415 limit  
 $49,000
 $49,000
Defined benefit limit  415 limit
 $195,000
 $195,000
Maximum compensation
 $245,000
 $245,000
Individual deferral limit
401(k) and 403(b)
 $16,500
 $16,500
Age 50 Catch-up deferral limit
 $5,500
 $5,500
Highly compensated employee
 $110,000
(look-back year for 2011)*
 $110,000
(look-back year for 2010)*