Last week the IRS announced the 2010 cost-of-living adjustments applicable to various dollar limits for retirement plans.  All of these limits will remain unchanged in 2010.  The annual limit for elective deferrals will remain $16,500 and for catch-up contributions for individuals age 50 or over $5,500.

Limitations that are adjusted by reference to Section 415(d) remain unchanged for 2010 because the cost-of-living index for the quarter ending September 30, 2009, is less than the cost-of-living index for the quarter ending September 30, 2008.  The Social Security Act procedures for adjusting benefit amounts state that any decline in the applicable index cannot result in a reduced limitation.  The Social Security Administration also recently announced that the Social Security wage base will remain at $106,800 for 2010. 

Below are the principal limits applicable for 2010.

Limit	2010
Compensation Limit	$245,000
401(k) Deferrals	$16,500
401(k) Catch-up Contributions	$5,500
Defined Contribution 415 Limit	$49,000
Defined Benefit 415 Limit	$195,000
Highly Compensated Employee	$110,000
Social Security Taxable Wage Base	$106,800