COST OF LIVING DOLLAR LIMITS

 FOR TAX YEAR 2003

 

     In an October, 2002 News Release, the IRS released the following cost-of-living dollar limits for Tax Year 2003.

Item

2003 Limitation
401(k) deferral limit increased from $11,000 to:

$12,000*
Annual Compensation limit remained the same for 2003:

$200,000
Defined Benefit 415 limit remained the same for 2003:

$160,000
Defined Contribution 415 limit remained the same for 2003:

$40,000
Dollar limit for Highly Compensated Employees remained the same for 2003:

$90,000
Compensation limit for SEP eligibility remained the same for 2003:

$450
Deferral limit for SIMPLE plans increased from $7,000 to:

$8,000**
457 deferral limit increased from $11,000 to:

$12,000*

 

                        *401(k) and 457 Plan catch-up contributions for individuals aged 50 or

                         over is increased from $1,000 to $2,000 for 2003.

 

                        **Simple plan catch-up contributions for individuals aged 50 or over is

                         increased from $500 to $1,000 for 2003.

                

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