RETIREMENT PLAN LIMITS FOR 2007

The annual defined contribution benefit limit increases from $44,000 to $45,000, and the annual compensation limit increases from $220,000 to $225,000 for 2007. The annual per participant limit on 401(k), 403(b) and 457(b) elective contributions increases from $15,000 to $15,500, however the maximum "catch-up" contributions for individuals age 50 and over stays at $5,000. The limitation for the definition of "highly compensated employee" also remains unchanged for 2007 at $100,000, and the annual compensation threshold for key employees increases to $145,000 from $140,000. The limit on the annual benefit payable under a defined benefit plan increases from $175,000 to $180,000.

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