Compare Contribution Limits for Business Retirement Plans
The amount you can contribute varies based on the plan you have, how your business is structured and what your compensation or net business profit is for the tax year in which you are contributing.
2009 Contribution Limits Incorporated Business Owner
Compensation1
Individual 401(k)2
SEP-IRA
Profit-Sharing Plan
SIMPLE-IRA3
$50,000
$29,000
$12,500
$12,500
$13,000
$75,000
$35,250
$18,750
$18,750
$13,750
$100,000
$41,500
$25,000
$25,000
$14,500
$150,000
$49,000
$37,500
$37,500
$16,000
$200,000
$49,000
$49,000
$49,000
$17,500
Unincorporated Business Owner
Net Business Profit4
Individual 401(k)2
SEP-IRA
Profit-Sharing Plan
SIMPLE-IRA3
$50,000
$24,794
$9,294
$9,294
$12,885
$75,000
$30,440
$13,940
$13,940
$13,578
$100,000
$35,087
$18,587
$18,587
$14,271
$150,000
$44,774
$28,274
$28,274
$15,656
$200,000
$49,000
$38,140
$38,140
$17,041
2010 Contribution Limits Incorporated Business Owner
Compensation1
Individual 401(k)2
SEP-IRA
Profit-Sharing Plan
SIMPLE-IRA3
$50,000
$29,000
$12,500
$12,500
$13,000
$75,000
$35,250
$18,750
$18,750
$13,750
$100,000
$41,500
$25,000
$25,000
$14,500
$150,000
$49,000
$37,500
$37,500
$16,000
$200,000
$49,000
$49,000
$49,000
$17,500
Unincorporated Business Owner
Net Business Profit4
Individual 401(k)2
SEP-IRA
Profit-Sharing Plan
SIMPLE-IRA3
$50,000
$24,794
$9,294
$9,294
$12,885
$75,000
$30,440
$13,940
$13,940
$13,578
$100,000
$35,087
$18,587
$18,587
$14,271
$150,000
$44,774
$28,274
$28,274
$15,656
$200,000
$49,000
$38,140
$38,140
$17,041
1. Compensation reflects W-2 income only.
2. Individuals age 50 or older may make an additional $5,500 catch-up contribution to their Individual 401(k)'s for each tax year 2009 and 2010. 3. Individuals age 50 or older may make an additional $2,500 catch-up contribution to their SIMPLE IRAs for each tax year 2009 and 2010.
4. Net business profit percentage less the self-employment tax deduction is used to calculate the maximum contribution and is equal to the employee percentage given.
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