New Limits

[Randy Watson]

Any word on when the 2007 limits will be published?

[Tom Poje]

they just released the CPI-U value for Sept. based on cpi-u numbers, I have deferral limit at 15,501. since this increases in units of 500, that would put the deferral limit at 15,500. on the other hand, my spreadsheet doesn't round in its calculations, so it could very well be it will be under that - it is so close.

other limits based on the numbers

DC annual addition 45,000

DB 180,000

comp limit 225,000

key ee 145,000

hce 100,000

guess now its a wait and see how close the spreadsheet actually came. I feel pretty confident about those numbers

taxable wage base is based on a different set of numbers than the CPI-U values.

[Guest jrzgrl]

My pension rep tells me they are due out sometime next week.

[Tom Poje]

looks like taxable wage base has just been released

http://www.ssa.gov/OACT/COLA/autoAdj.html

[JanetM]

The way I figure it, catch up stays at $5,000. Does anyone disagree?

[John Feldt ERPA CPC QPA]

JanetM,

You are correct. The cola increase is not large enough to increase the catch-up by $500. It would only move it up about $167 -- so the $5,000 limit will not increase for 2007.

CPI-U

Year July Aug Sept Total

2005 195.4 196.4 198.8 590.6

2006 203.5 203.9 202.9 610.3

Multiply $5,000 x 610.3 / 590.6 and since it's less than $5,500 the limit stays at $5,000

414(v)(2)© COST-OF-LIVING ADJUSTMENT. In the case of a year beginning after December 31, 2006, the Secretary shall adjust annually the $5,000 amount in subparagraph (B)(i) and the $2,500 amount in subparagraph (B)(ii) for increases in the cost-of-living at the same time and in the same manner as adjustments under section 415(d); except that the base period taken into account shall be the calendar quarter beginning July 1, 2005, and any increase under this subparagraph which is not a multiple of $500 shall be rounded to the next lower multiple of $500.

Hope this helps!

[wsp]

IR-2006-162 confirms all of Tom's numbers as well as the catchup remaining at 5k. I need a copy of that spreadsheet!

[John Feldt ERPA CPC QPA]

http://www.irs.gov/retirement/article/0,,id=96461,00.html

[david rigby]

Limits for 2007:

http://www.irs.gov/retirement/article/0,,id=96461,00.html

[Tom Poje]

ok, I'll attach the spreadsheet again. I had put this out here a couple of weeks ago, but what the heck

this should work every year (or at least until they change things again)

that way you can get an idea what next year will be before thenumbers are actually released

[wsp]

ok, I'll attach the spreadsheet again. I had put this out here a couple of weeks ago, but what the heck

this should work every year (or at least until they change things again)

that way you can get an idea what next year will be before thenumbers are actually released

Thanks Tom...

[Guest jrzgrl]

Yes, thank you everyone for the numbers, links, etc.