IRS Releases 2006 Plan Limits

Key new limits for qualified plans in 2006 will include the following:

• Section 415 annual addition limit: $44,000
• Annual compensation limit under Section 401(a): $220,000
• Maximum amount subject to 5-year distribution period in an ESOP under Section 409(0): $885,000 total amount/annual distribution amount $175,000
• Section 414(q) highly compensated employee definition: $100,000
• Section 401(k) maximum deferrals: $15,000