2006 Retirement Pension Plans
Maximum Annual Benefit for Defined Benefit Plan	$160,000
Maximum Annual Contribution Defined Contribution Plan	$40,00
Highly Compensated Employee Definition (In general)	$90,000 & Top 20% *
Annual Compensation Limit	$200,000
401(K) Maximum Exclusion	$12,000
SIMPLE Contribution Limit	$8000
* Employee Compensation more than 5% of the capitol or profits in the current or previous year.

Under any type of retirement plan, if you are considered an active participant for any part of the plan year ending with or within your taxable year, you are treated as an active participant for the entire taxable year. Because of this plan year rule, you may be treated as an active participant even if you worked for the employer for only part of the year. Under IRS guidelines, you can be treated as an active participant in the year of retirement and even in the year after retirement if your employer maintains a fiscal year plan.

The plan year rule works differently for defined benefit pension plans than for defined contribution plans such as profit-sharing plans, 401(k) plans, money purchase pension plans, and stock bonus plans.

Defined Benefit Pension Plans: You are considered an active participant in a defined benefit pension plan if, for the plan year ending with or within your taxable year, you are eligible to participate in the plan. Under this rule, as long as your are eligible, you are treated as an active participant, even if you decline participation in the plan or you fail to make a mandatory contribution specified in the plan. Furthermore, you are treated as an active participant even if your rights to benefits are not vested.

Defined Contribution Plan: For a defined contribution plan, you are generally considered an active participant if "with respect to" the plan year ending with or within your taxable year:

1. You make elective deferrals to the plan

2. Your employer contributes to your account

3. Forfeitures are allocated to your account

If any of the above events occur, you are treated as an active participant for that taxable year, even if you do not have a vested right to receive benefits from your account.