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MAXIMUM DEFERRAL AND THRESHOLD LIMITS RELEVANT TO STATE AND LOCAL GOVERNMENT RETIREMENT PLANS

Compiled by Cynthia L. Moore
Washington Counsel
National Council on Teacher Retirement

Each year IRS releases an announcement about whether various pension limits have been raised. The Social Security Administration makes an similar announcement regarding the wage base. Here are the limits for 1998 of interest to state and local plans. The 1997 data is included as a comparison.

  1997 1998
Section 415 Defined Benefit Dollar Maximum $125,000 $130,000
Section 415 Firefighter/Police Special Limitation $ 70,000 Limitation eliminated by Taxpayer Relief Act
401(k) Elective Deferral Maximum $ 9,500 $10,000
403(b) Tax Sheltered Annuity Maximum(per Section 402(g)) $ 9,500 $ 10,000
457 Deferred Compensation Limit $ 7,500 $ 8,000
Maximum Contribution to Qualified Defined Contribution Plans $ 30,000 $ 30,000
Maximum Amount of Compensation Under Section 401(a)(17) $160,000 $160,000
Social Security Wage Base $ 65,400 $ 68,400
Medicare Wage Base No Limit No Limit

Source: IRS Information Release IR-97-41 and Social Security Administration Announcement.

 

 

 

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Last Update: November 16, 2006