News
Briefs
Retirement plan update
There is good news once again for physicians in the retirement plan area. Cost-of-living adjustments have increased the maximum allowable pension and/or profit sharing plan annual contribution from $41,000 to $42,000 for plan years beginning in 2005. The annual compensation limit has also increased from $205,000 to $210,000 effective with plan years beginning in 2005. For many physician groups, these changes will mean that the practice can contribute an additional $1,000 in 2005 for the physicians without any increase in the contributions for the staff.
For those of you with 401(k) plans, the annual elective deferral limit for 2005 is $14,000, and if you are at least age 50 by the end of the plan year, an additional “catch-up” 401(k) contribution is allowed up to $4,000 in 2005.
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