Vision Payroll

In IR-2008-118, the Internal Revenue Service (IRS) announced increases to the limits on SIMPLE plan contributions for 2009. The limitation for SIMPLE plans is codified in §408(p)(2)(E) of the Internal Revenue Code of 1986 (IRC). This section also requires annual adjustments as necessary to keep pace with inflation in a manner similar to that required by IRC §415 for retirement plans. For 2009, the SIMPLE plan regular limitation will increase from $10,500 for 2008 to $11,500 for 2009. The age 50 and over catch-up contribution remains at $2,500 for individuals who plan to reach age 50 before the end of 2009. Contact Vision Payroll if you have questions on changes to the SIMPLE plan contribution limits.