and the limits should be...

[Tom Poje]

the Sept CPI-U was just released, and is 226.889

so according to the code, the following should be the limits for next year:

close, so close to getting an extra jump in the 415 limit to 51,000

xxxxxxxx catch deferral compen dc 415. db 415. key emp hce

unround 5,752 17,255 254,780 50,956 203,824 165,607 115,120

rounded 5,500 17,000 250,000 50,000 200,000 165,000 115,000

of course, I guess Congress could always jump in and say "We are changing the rules. you will never ever see an increase because we spent all your money and are short of cash"

for soc sec, which is based on the CPI-W factors

I come up with

an increase of 1.0359

depending on the rounding I make that a 3.6% increase

[Guest Jeff Hartmann]

in addition to those COLA's for 2012, Social Security announced the 2012 Taxable Wage Base as $110,100.

Also, the PBGC flat-rate premium should remain at $35 in 2012 (in the absence of legislated increase), but don't expect to see any official announcement from PBGC for perhaps a month or so.

[Tom Poje]

with a taxable wage base of 110,000

I arrive at the following for the covered comp limits

(hopefully the spreadsheet still works)

edited:

note: I have a sample plan with dummy people for different ages on Relius and by plugging in the TWB for 2012 the results that show on the nondiscrim report for the covered comp are the same as my spreadsheet. hurray! looks like it still works.

[Peter Gulia]

While many of us are getting ready to do our updated tables of inflation-indexed (or law-changed) limits, let me throw out a challenge to some experienced (or knowledgeable) BenefitsLink mavens, what were the limits in 1984?

And what were the limits in 1987 (the first year after the Tax Reform Act of 1986)?

[doombuggy]

Just got the notice/announcement from TAG about 1/2 hour ago, and tom you were right on the money!

[Tom Poje]

I guess if you are into such things, for PIA purposes, the 'bend' points for 2012 can be found here (and how they are determined)

(or if you use Relius and want to update your plan limitation table)

http://www.socialsecurity.gov/OACT/COLA/piaformula.html

[ESOP Guy]

While many of us are getting ready to do our updated tables of inflation-indexed (or law-changed) limits, let me throw out a challenge to some experienced (or knowledgeable) BenefitsLink mavens, what were the limits in 1984?

And what were the limits in 1987 (the first year after the Tax Reform Act of 1986)?

Even the IRS only goes back to 1989

http://www.irs.gov/pub/irs-tege/cola_table.pdf

[mbozek]

While many of us are getting ready to do our updated tables of inflation-indexed (or law-changed) limits, let me throw out a challenge to some experienced (or knowledgeable) BenefitsLink mavens, what were the limits in 1984?

And what were the limits in 1987 (the first year after the Tax Reform Act of 1986)?

Even the IRS only goes back to 1989

http://www.irs.gov/pub/irs-tege/cola_table.pdf

In 84 there were few $ limits (other than 415) b/c Congress only began limiting $ amounts in plans in the 86 Tax Reform Act to lower revenue loss to make the tax revenue equal the reduction in tax ratres. Prior to 87 the limit on elective 401k contributions was $30,000 which was the 415 limit for a DC plan. In 87 it dropped to $7500 subject to Cola increase. Prior to 87 there was no limit on employee comp included for pension plans in 86. The dollar limit only applied to self employed persons. In 87 it was 200k subject to cola. The current HCE definition was added in 86 to be effective in 87.

[John Feldt ERPA CPC QPA]

In 1984, I think the DC dollar limit was $30,000 (down from $45,475 in 1983).

In 1987, it was still $30,000 (it eventually increased in 2001 to $35,000).

In 1976, the DC limit was 26,825 and it was 25,000 in 1975. However, for purposes of determining your limits under 415(e) under the transitional rule, if you contributed more than the DC maximum in 1976 and in prior years, you can ignore the amounts that were contributed in excess of the limits.

[ESOP Guy]

The best rule back then was the carry forward of the unused deductable limit. I saved more than one client from huge excise taxes after they put more than 15% of compensation into a plan. If the company had been around for a while there was almost always a year they hadn’t put the 15% in so they had a carry forward. So they got to deduct the excess and not pay the excise tax for taking too large of a deduction.

[John Feldt ERPA CPC QPA]

1984 Social Security Taxable Wage base = $37,800

1984 415(b)(1)(A) = $90,000 (down from $136,425 in 1982)

1984 415©(1)(A) = $30,000

1984 402(g)(1) = n/a

1984 Officer comp, 416(i)(1)(A)(i) = $45,000

1987 Social Security Taxable Wage base = $43,800

1987 415(b)(1)(A) = $90,000

1987 415©(1)(A) = $30,000

1987 402(g)(1) = 7,000

1987 Officer Comp, 416(i)(1)(A)(i) = $45,000

1987 HCE, 414(q)(1)(B) and © = $75,000 and $50,000

1987 ESOP amounts, 409(o)(1)©(ii) = $500,000 and $100,000

[XTitan]

Let's at least throw in 1989 for the first 401(a)(17) limit at 200k.

[Guest D_Doucette]

Hi all,

I'm trying to confirm the UNrounded Annual Compensation Limit for Grandfathered Participants in Governmental Plans Which Followed 401(a)(17) Limits on July 1, 1993.

I have (unconfirmed) 2011 unrounded limit of $362,740 and calculated 2012 unrounded* limit of $376,360 ($362,740* 1.03755).

*but, I'm unclear how the "unrounded" limit is rounded - the factor to 4dp or 5db and the nearest $20 rounding.

Can anyone confirm the limit is $376,360 or $376,380 (or other)?

Thanks!

[Peter Gulia]

J4FKBC, thank you for the 1984 and 1987 information.

[Tom Poje]

D Doucette-

the following (page 3) would at least seem to confirm the 2011 figure

http://www.buckconsultants.com/buckconsult...keymaximums.pdf