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Tax Updates
| Social
Security Wage Base |
2004 |
2005 |
| Social
Security Taxable Wage Base |
$87,900 |
$90,000 |
| Medicare
Taxable Wage Base |
No
limit |
No
limit |
| Individual
Retirement Accounts |
2004 |
2005 |
| Roth
IRA Individual, up to 100% of earned income |
$3,000 |
$3,000 |
| Traditional
IRA Individual, up to 100% of earned income |
$3,000 |
$3,000 |
| Roth
and traditional IRA additional annual
"catch-up" contributions for employees age
50 and older |
$500 |
$500 |
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| Social
Security Wage Base |
2004 |
2005 |
| Social
Security Taxable Wage Base |
$87,900 |
$90,000 |
| Medicare
Taxable Wage Base |
No
limit |
No
limit |
| Individual
Retirement Accounts |
2004 |
2005 |
| Roth
IRA Individual, up to 100% of earned income |
$3,000 |
$3,000 |
| Traditional
IRA Individual, up to 100% of earned income |
$3,000 |
$3,000 |
| Roth
and traditional IRA additional annual
"catch-up" contributions for employees age
50 and older |
$500 |
$500 |
| Annual
Qualified Plan Limits |
2004 |
2005 |
| Defined
Contribution Plan Dollar limit on additions Section
415(c)(1)(A) |
$41,000 |
$40,000 |
| Defined
Benefit Plan limit on benefits |
$165,000 |
$160,000 |
| Maximum
compensation used to determine contributions |
$205,000 |
$200,000 |
| 401(k),
SARSEP, 403(b) Plan Deferrals Section 402(g), &
457 Plan deferrals Section 457(b)(2) |
$13,000 |
$12,000 |
| 401(k),
403(b), 457 & SARSEP additional
"catch-up" contributions for employees age
50 and older |
$3,000 |
$2,000 |
| SIMPLE
deferrals Section 408(p)(2)(A) |
$9,000 |
$8,000 |
| Simple
additional "catch-up" contributions for
employees age 50 and older |
$1,500 |
$1,000 |
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