Posted on January 12, 2006 at 17:36:37:
Top executives and other high-paid workers will pay as much as $260 more in FICA taxes this year – as will their employers – because the Social Security wage base has jumped to $94,200. The rates remain the same, though: 6.2 percent for FICA and 1.45 percent for Medicare.
On the other hand, Social Security benefits are up 4.1 percent. Earning limits for beneficiaries are also up. Those between 62 and 65 and eight months can earn $12,480 before they lose $1 of benefits for every dollar earned.
More: Maximum contribution to 401(k), 403(b) and 457 retirement plans is $15,000 this year. Those born before 1957 can put in $5,000 more. Plan contributions are based on up to $220,000 of salary. The ceiling for contributions to defined-contribution plans like Keoghs and profit-sharing is $44,000. The benefit limit for pension plans rises to $175,000 this year.