Tax Guide: Qualified Retirement Plan Contribution Limits

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Contribution Limits

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1997 Qualified Retirement Plan Contribution Limitations and Other Retirement Related Figures

	1997	1998
Includible Compensation ^a	$160,000	$160,000
401(k) Pretax Deferrals ^a	$9,500	$10,000
Defined Benefit Plan Pension ^a	$125,000/yr	$130,000/yr
Defined Contribution, lesser of 25% of Compensation or	$30,000/yr	$30,000/yr
Highly Compensated Employee: ^a
Automatic	$80,000	$80,000
Top Paid Group	$80,000	$80,000
Social Security Wage Base ^b	$65,400	$68,400
Medicare Tax Wage Base	No limit	No limit
a. Subject to annual adjustment for inflation. b. Adjusted annually