News
Briefs
Retirement Plan Update
Good news continues for physicians in the retirement plan area. The maximum allowable combined pension and profit sharing plan annual contribution has increased from $42,000 to $44,000 for plan years beginning in 2006. The annual compensation limit has also risen from $210,000 to $220,000. For practices with a profit sharing plan with “permitted disparity,” that will mean a staff contribution of 16.74% for 2006.
For those of you with 401(k) plans, the 2006 annual elective deferral limit is $15,000. Also, if you are at least age 50 by the end of that year, an additional “catch-up” 401(k) contribution is allowed of up to $5,000. Still further, if your 401(k) allows for them, a participant may be able to make after-tax “Roth 401(k)” contributions beginning this year, offering the potentially valuable advantage of not being taxable when later withdrawn.
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2006 Kalogredis, Sansweet, Dearden and Burke, Ltd.
