Speaking of retirement planning-2008 Pension Plan Limitations

The IRS announced cost-of-living adjustments applicable to dollar limitations for pension plans and related amounts for 2008. Some amounts change due to cost-of-living adjustments, while others are Code-required changes. For instance, the (1) benefit limit for defined benefit plans increases from $180,000 to $185,000; (2) defined contribution plan limit goes up from $45,000 to $46,000; (3) compensation limit for determining benefits and contributions increases from $225,000 to $230,000; and (4) definition of a highly compensated employee goes from $100,000 to $105,000. On the other hand, the (1) SEP contribution threshold remains unchanged at $500; (2) limitation for SIMPLE retirement accounts stays at $10,500; and (3) compensation amount for defining a control employee for fringe benefit valuation purposes remains unchanged at $90,000. News Release IR-2007-171 .

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Reed Tinsley CPA

This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on accounting & tax, practice management, and financial planning. Schedule a Free Consultation.