1998 Qualified Plan Limits
Most of the limits affecting qualified retirement plans are indexed to inflation,
subject to certain rounding rules. The key limits for 1998 are:
$10,000 |
Maximum employee pre-tax deferral in a 401(k) or 403(b) plan. |
$6,000 |
Employee deferral limit for SIMPLE plans (IRA and 401(k) versions).
(unchanged) |
$8,000 |
Deferral limit for Section 457 governmental deferred compensation plans. |
$30,000 |
Annual addition limit for defined contribution plans. (unchanged) |
$160,000 |
Maximum compensation that can be considered in a qualified retirement plan. |
$130,000 |
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
1998 retirements. |
$80,000 |
The dollar limit in the definition of "highly compensated employees" for
nondiscrimination testing. (rules changed in 1997 under Pension Simplification) |
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