[16689]
October 21, 2003
TO: PENSION MEMBERS No. 45-03
PENSION OPERATIONS ADVISORY COMMITTEE No. 70-03
RE: IRS ANNOUNCES PENSION PLAN LIMITATIONS FOR 2004
The Internal Revenue Service has released cost of living and other adjustments
applicable to dollar limitations for pension plans (attached). Effective January 1, 2004, the new
dollar limitations include, but are not limited to, the following:
Limit 2003 2004
Defined benefit plan limit, IRC 415(b)(1)(A) $160,000 $165,000
Defined contribution plan limit, IRC 415(c)(1)(A) $40,000 $41,000
Annual compensation limit
IRC 401(a)(17), 404(l), 408(k)(3)(C) and 408(k)(6)(D)(ii)
$200,000 $205,000
Limit used for definition of highly compensated
employee, IRC 414(q)(1)
$90,000 $90,000
Elective deferral limit, IRC 402(g) $12,000 $13,000
Deferral limit for state and local governments and tax-
exempt organizations, IRC 457(e)(15)
$12,000 $13,000
SEP compensation amount, IRC 408(k)(2)(C) $450 $450
SIMPLE contribution limit, IRC 408(p)(2)(E) $8,000 $9,000
Catch-up contributions to qualified plans, 403(b) plans
and 457 plans, IRC 414(v)(2)(B)(i)
$2,000 $3,000
Catch-up contributions to SIMPLE plans
IRC 414(v)(2)(B)(ii)
$1,000 $1,500
To see the IRS release discussing all plan limit changes for 2004, you may also go to
http://www.irs.gov/newsroom/article/0,,id=114714,00.html.
Lisa Robinson
Assistant Counsel