Tax News

CCH (cch.taxgroup.com) reports:

The IRS has announced inflation-adjusted 2008 dollar amounts affecting employer-sponsored retirement and fringe benefit plans, traditional and Roth IRAs, and the retirement savings contribution credit. Some amounts will remain the same as in 2007, most notably:
--the $15,500 limit on elective deferrals to 401(k)
plans, 403(b)
plans, certain 457
plans and the federal government's Thrift Savings Plan;
--the $10,500 limit on elective contributions to SIMPLE retirement accounts;
--the $5,000 and $2,500 limits on catch-up contributions to employer plans; and
--the $500 minimum compensation amount for participation in SEP plans.
The limit on contributions to traditional and Roth IRAs for 2008 is $5,000, plus $1,000 in catch-up contributions for taxpayers who have attained age 50 by the end of the year. The $5,000 limit will be adjusted for inflation beginning in 2009; the $1,000 catch-up limit will not be adjusted for cost of living increases under the current law.
Effective January 1, 2008:
--the beginning of the phaseout range for deductible IRA contributions increases from $83,000 to $85,000 for active participants in an employer plan filing a joint return, from $52,000 to $53,000 for other active participants (other than married individuals filing separately), and from $156,000 to $159,000 for taxpayers who are not active participants but are married to an active participant;
--the beginning of the phaseout range for allowable Roth IRA contributions increases from $156,000 to $159,000 for joint filers, and from $99,000 to $101,000 for other taxpayers (other than married individuals filing separately);
--the limit on annual additions to a defined contribution plan increases from $45,000 to $46,000;
--the limit on annual benefits under a defined benefit plan increases from $180,000 to $185,000;
--the limit on compensation that can be taken into account for most purposes increases from $225,000 to $230,000;
--the amount in the definition of "key employee" for top-heavy plan purposes increases from $145,000 to $150,000;
--the amount in the definition of "highly compensated employee" increases from $100,000 to $105,000;
--the amount for determining the maximum ESOP account subject to a five-year distribution period increases from $915,000 to $935,000, while the dollar amount used to determine the lengthening of the five-year distribution period increases from $180,000 to $185,000;
--the special annual compensation limit for eligible participants in certain governmental plans increases from $335,000 to $345,000; and
--the adjusted gross income limitations on eligibility for various levels of the retirement savings contribution credit increase slightly.
For fringe benefit valuation purposes, the compensation amount that makes a corporate officer a "control employee" remains $90,000 for 2008. The compensation that makes any other employee a "control employee" increases from $180,000 to $185,000.
IR-2007-171, 2007FED ¶46,676
Other References:
Code Sec. 25B
CCH Reference - 2007FED ¶3838.03
CCH Reference - 2007FED ¶3838.07
CCH Reference - 2007FED ¶3838.25
Code Sec. 61
CCH Reference - 2007FED ¶5907.032
CCH Reference - 2007FED ¶5907.044
CCH Reference - 2007FED ¶5907.27
Code Sec. 401
CCH Reference - 2007FED ¶17,903.01
CCH Reference - 2007FED ¶17,903.025
CCH Reference - 2007FED ¶17,903.03
CCH Reference - 2007FED ¶17,903.105
CCH Reference - 2007FED ¶17,903.15
CCH Reference - 2007FED ¶18,112.0245
CCH Reference - 2007FED ¶18,112.0265
CCH Reference - 2007FED ¶18,112.036
CCH Reference - 2007FED ¶18,112.048
Code Sec. 402
CCH Reference - 2007FED ¶18,221.022
CCH Reference - 2007FED ¶18,221.10
Code Sec. 404
CCH Reference - 2007FED ¶18,347.01
CCH Reference - 2007FED ¶18,347.025
CCH Reference - 2007FED ¶18,348.028
CCH Reference - 2007FED ¶18,348.107
CCH Reference - 2007FED ¶18,349.022
Code Sec. 408
CCH Reference - 2007FED ¶18,922.0249
CCH Reference - 2007FED ¶18,922.0253
CCH Reference - 2007FED ¶18,922.0264
CCH Reference - 2007FED ¶18,922.1068
Code Sec. 408A
CCH Reference - 2007FED ¶18,930.024
CCH Reference - 2007FED ¶18,930.197
Code Sec. 409
CCH Reference - 2007FED ¶18,951.031
CCH Reference - 2007FED ¶18,951.20
Code Sec. 414
CCH Reference - 2007FED ¶19,173.25
CCH Reference - 2007FED ¶19,195.023
CCH Reference - 2007FED ¶19,198.01
CCH Reference - 2007FED ¶19,198.25
Code Sec. 415
CCH Reference - 2007FED ¶19,218.022
CCH Reference - 2007FED ¶19,218.023
CCH Reference - 2007FED ¶19,218.0235
CCH Reference - 2007FED ¶19,218.03
CCH Reference - 2007FED ¶19,218.034
CCH Reference - 2007FED ¶19,218.27
Code Sec. 416
CCH Reference - 2007FED ¶19,253.024
Code Sec. 457
CCH Reference - 2007FED ¶21,536.035
CCH Reference - 2007FED ¶21,536.036
CCH Reference - 2007FED ¶21,536.0365
CCH Reference - 2007FED ¶21,536.037
CCH Reference - 2007FED ¶21,536.07
Tax Research Consultant
CCH Reference - TRC COMPEN: 15,152
CCH Reference - TRC COMPEN: 33,156
CCH Reference - TRC COMPEN: 39,100
CCH Reference - TRC RETIRE: 9,050
CCH Reference - TRC RETIRE: 21,102.05
CCH Reference - TRC RETIRE: 24,210
CCH Reference - TRC RETIRE: 27,102.05
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CCH Reference - TRC RETIRE: 36,050
CCH Reference - TRC RETIRE: 36,200
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CCH Reference - TRC RETIRE: 36,352
CCH Reference - TRC RETIRE: 36,354
CCH Reference - TRC RETIRE: 63,114
CCH Reference - TRC RETIRE: 66,204
CCH Reference - TRC RETIRE: 69,058.154
CCH Reference - TRC RETIRE: 74,104.05