Retirement plan limitations - Fast Tax Facts 2002 - Brief Article

California CPA, Nov, 2002

RETIREMENT PLAN LIMITATIONS

                                          2001     2002

Maximum 401(k)/403(b) Deferral         $10,500  $11,000
Maximum Defined Contribution Plan
 Contribution                           35,000   40,000
Maximum Annual Benefit for
 Defined Benefit Plans                 140,000  160,000
Annual Compensation Limit
 for Computing Plan Benefits           170,000  200,000
Annual Compensation Limit for the
 Definition of Highly Compensated
 Employee Sec. 414(q)(1)                85,000   90,000
Compensation Minimum for SEP coverage      450      450
Maximum Contribution for SIMPLES         6,000    7,000
Catch-up Contribution (taxpayers 50               1,000 *
 and older)

* Applies to deferral plans only.
Key Employee for Top Heavy Purposes:


* Officers Earning Over                       $130,000
* A 5-percent Owner of Employer
* A 1-percent Owner of Employer Earning over  $150,000