Jacob M. Leon, CFP^®

The year 2008 benefit and dollar limitations for qualified pension, profit sharing, 401(k), simple and employee stock ownership plans have been announced by the Internal Revenue Service. Changes are shown in red.

2007   2008 401(k), 403(b) & 457 Employee Deferral Contribution Limit  $15,500.00   $15,500.00 401(k), 403(b) & 457 Catch-up Contribution Limit (Age 50 or older)  $5,000.00   $5,000.00 Maximum Annual Addition to Defined Contribution Plans  $45,000.00   $46,000.00 (or 100% of Compensation, whichever is less)        Maximum Annual Retirement Benefit for Defined Benefit Pension Plans  $180,000.00   $185,000.00 (or 100% of Average Compensation, whichever is less)        Maximum Annual Compensation for Benefits/Contributions  $225,000.00   $230,000.00 Highly Compensated Employee  $100,000.00   $105,000.00 Social Security Wage Base  $97,500.00   $102,000.00 SEP Minimum Compensation Level  $500.00   $500.00 SIMPLE Plan Employee Deferral Contribution Limit  $10,500.00   $10,500.00 SIMPLE Plan Catch-up Contribution Limit (Age 50 or older)  $2,500.00   $2,500.00 Key Employee – Minimum Officer Compensation  $145,000.00   $150,000.00 Traditional IRA/Roth IRA Contribution Limit  $4,000.00   $5,000.00 Traditional IRA/Roth IRA Catch-up Contribution Limit (Age 50 or older)  $1,000.00   $1,000.00

For more information on how this may affect your tax situation

call me at 713-333-7477

or email me at jacob@thefinancialfirm.com

 

Any discussion pertaining to taxes in our web site (www.thefinancialfirm.com) may be part of a promotion or marketing effort. As provided for in circular 230 of the IRS, advice related to federal taxes that is contained in this communication is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue code. Individuals should seek advice based on their own particular circumstances from an independent tax advisor.

Posted 11/16/07

Securities offered through Registered Representatives of NFP Securities, Inc., a Broker/Dealer and Member FINRA/SIPC. Investment Advisory Services offered through Investment Advisory Representatives of NFP Securities, Inc. a Federally Registered Investment Advisor.  Jacob M Leon CFP is a member of PartnersFinancial, a division of NFP Insurance Services, Inc., which is a subsidiary of National Financial Partners Corp, the parent company of NFP Securities, Inc.
 

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