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The IRS announced the 2003 Retirement plan limits. The IRS adjusts retirement plan limits to reflect changes in the cost of living, and their well be many changes for the next year. Most plan limits will increase; the exceptions are the SIMPLE plan deferral limit, the 457 plan deferral limit, and the maximum defined contributions. Here are the numbers for 2003. |
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2002 |
2003 |
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Maximum 401(k) |
$11,0000 |
$12,000 |
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Maximum Plan Pay |
$200,000 |
$200,000 |
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Maximum Defined Contribution |
$40,000 |
$40,000 |
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Maximum Defined Benefit Limit |
$160,000 |
$160,000 |
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SIMPLE Deferral Limit |
$7,000 |
$8,000 |
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457 Deferral Limit |
$11,000 |
$12,000 |
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SEP Pay for Participation |
$450 |
$450 |
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Highly Compensated |
$90,000 |
$90,000 |
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The taxable wage base for Social Security has also increased. The new limit is now $87,000 for 2003, up from $84,900 in 2002 |
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Moorman and Company, an accounting and personal financial management firm based in Palo Alto, serves the San Francisco Bay Area, Peninsula, and Silicon Valley from Hillsborough to Saratoga-Los Gatos, including Atherton, Menlo Park, Los Altos, Los Altos Hills, and Cupertino.