Jump to content

2007 Cost of Living Increases


Recommended Posts

Guest Powers
Posted

Does anyone know when these will be published? I know it has been in the month of October in the past, but I am attempting to complete some modeling for 2007 and I do not have the limits - specifically 401(k) and catch-up. Any help would be appreciated.

Posted

Published in October or November. Generally, based on end-of-September indexes.

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

Guest Powers
Posted

Thanx, Pax!

Posted

so supposedly, based on what is in the code, cost of living adjustment uses base period for the calendar quarter beginning July 1 2005

the CPI-U values for July - Aug 2005 were

195.4 196.4 198.8

the value for July 2006 was 203.5. If there is no change the next 2 months you would have

(203.5 + 203.5 + 203.5) / (195.4 + 196.4 + 198.8) * 15,000 = 15,506

amounts are increased in increments of 500. so deferrals might go to 15,500 (if I correctly understand what the code says) this would mean catch ups will not change since they increment in units of 500 as well.

very close at the moment.

the web site for the cpi-u values (generally updated about the 20th of the month) is

http://data.bls.gov/cgi-bin/surveymost?cu

check the first box, and then scroll down and click retrieve data

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...

Important Information

Terms of Use