1996 Qualified Plan Limits
Most of the limits affecting qualified retirement plans are indexed to inflation,
subject to certain rounding rules. The key limits for 1996 are:
$9,500 |
Maximum employee pre-tax deferral in a 401(k) or 403(b) plan. |
$30,000 |
Annual addition limit for defined contribution plans. |
$150,000 |
Maximum compensation that can be considered. (Unchanged from last year). |
$120,000 |
Maximum annual pension payable from a defined benefit plan at age 65 as a life only
annuity. Adjusted for early payment and other forms of annuity. The limit applies to 1996
retirements; the participant compensation limit for employees retiring before 1996 is
adjusted by a 1.0264 factor. |
$155,000 |
Threshold for excess distributions tax. |
$66,000
$100,000 |
The limits in the definition of highly compensated employees remain the same as last
year. (highly compensated/super highly compensated) |
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