RETIREMENT PLAN LIMITS FOR 2004

The annual defined contribution benefit limit increases from $40,000 to $41,000, and the annual compensation limit increases from $200,000 to $205,000 for 2004.  The annual per participant limit on 401(k) contributions increases from $12,000 to $13,000, and the maximum “catch-up” contributions for individuals age 50 and over increases from $2,000 to $3,000.  The limitation for the definition of “highly compensated employee” ($90,000 in annual compensation) and the dollar limitation concerning the definition of a key employee ($130,000) remain unchanged, but the limit on the annual benefit payable under a defined benefit plan increases from $160,000 to $165,000.

Andrew S. Williams
Aronberg Goldgehn Davis & Garmisa
One IBM Plaza, Suite 3000
Chicago, Illinois 60611
312/755-3145
awilliams@agdglaw.com