Estimated Indexed Limits for 2000?

[Alf]

I have seen a lot of press lately on projections for the 2000 rate brackets, standard deduction, and tax credit amounts in the individual tax area. Although I know that these numbers cannot be finalized until later in the year, has anyone heard about the projections for retirement plans? I understand that the following limits are indexed: annual compensation limit, annual limit on elective deferrals, highly compensated employee threshold, the defined contribution plan contribution limit, and the defined benefit plan contribution limit. Does anyone know what the most current projections are?

[Ellie Lowder]

Hey Alf! Most believe that the retirement plan limits will stay the same for 2000 and most have reported that belief. However, just recently spotted a prediction that limits would move up - for example, the basic 402(g) limit to $10,500. We should know soon, e.g. usually announced October!

[Carol V. Calhoun]

And just to make your life more complicated, the tax bill recently vetoed by the President, but expected to come back in some form, would modify the limits. However, these changes are typically not effective until 2001, so at least you have a little advance warning.

----------------------------------

Employee benefits legal resource site

[Guest Kevin Birmingham]

We won't know until the September CPI comes out, but my calculations have the compensation limit increasing from 160,000 to 170,0000; the deferral limit increasing from 10,000 to 10,500; and the DB maximum benefit increasing from $130,000 to $135,000.

kcb

[Carol V. Calhoun]

Well, we don't have to estimate any more; you can click here to see what all the new limits are.

-------------------------------------

Employee benefits legal resource site