2010 Retirement Plan Limits

Individual Limits
401(k) Employee Contributions	$16,500
401(k) Employee Catch Up for employees age 50 or older	Additional $5,500
Profit Sharing Plan	100%* of pay up to $49,000
Money Purchase Plan	100%* of pay up to $49,000
Annual Additions Limit Includes Employee, employer and forfeitures; Does Not Include Catch Up Contribution	100%* of pay up to $49,000
*Not to Exceed Employer Plan Limits

Employer Plan Limits
Profit Sharing Plan	25% of Eligible Payroll**
Money Purchase Plan	25% of Eligible Payroll**
** ½ SECA Adjustment Required for Sole Proprietors

Participant Loan Limits
If Plan Language Allows, Participant May Borrow	50% of Vested Account balance up to $50,000
Repayment Requirements	Amortized Principle and Interest, at least quarterly payments Reasonable Interest Rate Not to Exceed 5 years (except for purchase of principal residence)

Keys & Highly Compensated Employees
Key Employees: Used to Determine Top-heavy Status. A plan is Top Heavy if 60% or more of assets belong to Key Employees	During current plan year: Officer and earning > $160,000 (indexed) 5% Owner; or >1% owner and earning > $150,000
Highly Compensated: Used for Discrimination Testing	>5% owner in the current or preceding year, or Compensation >$110,000 in 2009 for 2010 testing

Indexed Limits & History	2010	2009	2008	2007
401(k) Employee Contributions	$16,500	$16,500	$15,500	$15,500
401(k) Catch Up Contributions	$5,500	$5,500	$5,000	$5,000
Defined Contribution Plan	$49,000	$49,000	$46,000	$45,000
Defined Benefit Limit	$195,000	$195,000	$185,000	$180,000
Compensation	$245,000	$245,000	$230,000	$225,000
FICA Taxable Wage Base	$106,800	$106,800	$102,500	$97,500

Due Dates & Penalties
Plan Establishment Due Date	By Fiscal Year End
Plan Contribution Due Date	Employer contributions: Tax filing date plus extensions, not to exceed 8 ½ months after the plan year end. Employee contributions: It is recommended that deposits be made within 7 days of withholding from employee pay.
Forms 5500 Due Date	7 months after the plan year end (plus 2 ½ month extension)
Failure to File Form 5500	IRS $25 per day up to $15,000; DOL Up to $1,000 per day
Premature Distribution	10% Excise Tax if under age 59 1/2
Excess Contribution	10% Excise Tax