SEP’s, SIMPLE’s, and Qualified Plans

The limits for contributions to all types of retirement plans have increased, both for employees and for self-employed taxpayers.

The limit for 401k, 403b, 457, and SEP contributions increases to $14,000 for 2005 (up from $13,000 for 2004). The limit for SIMPLE plans increased to $10,000, up from $9,000.

A taxpayer over the age of 50 at the end of 2005 may contribute and additional $4,000 catch-up contribution to his 401k. 403b, or SEP, or an additional $2,000 to his SIMPLE plan. These figures are up from $3,000 and $1500, respectively.