Among the increases, the maximum total contribution, including employer contributions, to defined contribution plans will rise to $46,000 per participant from $45,000.
The maximum annual benefit that can be funded through a defined benefit plan will increase to $185,000 from $180,000, while the amount of employee compensation that can be considered in calculating pension benefits and contributions to defined contribution plans will rise to $230,000 from $225,000.
Additionally, the definition of a highly compensated employee for 401(k) plan non-discrimination testing purposes will rise to one earning at least $105,000 a year, up from $100,000.
However, the maximum annual contribution an employee can make through salary reduction to a 401(k) plan will remain at $15,500, while the maximum annual so-called catch-up contribution that employees age 50 and older can make to 401(k) and certain other defined contribution plans will be unchanged at $5,000.
The 2008 limits, which reflect a methodology set by federal law, reflect increases in the cost of living.