Tom Poje Posted October 15, 2015 Posted October 15, 2015 the CPI factor was released today, and as expected, based on the formula there will be no change next year in any limit. the three month total was only 714.915, barely above last year's 714.133. I see the govt announced no change in social security, I wouldn't think it will take them long before they make it official no change on the plan limits either.
david rigby Posted October 15, 2015 Posted October 15, 2015 News release last year was dated 10/23/14. 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.
Tom Poje Posted October 15, 2015 Author Posted October 15, 2015 they did indicate no change in the TWB because that is tied to the COLA. http://www.ssa.gov/OACT/COLA/cbb.html (no increase because no increase in COLA. (through the formula I have 122,700, but the lack of COLA overrides everything. same thing happened in 2010 and 2011)
Carol V. Calhoun Posted October 15, 2015 Posted October 15, 2015 Every previous year, the IRS COLA limits have been released the same day as the Social Security limits. I'm hoping that will happen this year, but haven't seen any sign of the IRS limits yet. Employee benefits legal resource site The opinions of my postings are my own and do not necessarily represent my law firm's position, strategies, or opinions. The contents of my postings are offered for informational purposes only and should not be construed as legal advice. A visit to this board or an exchange of information through this board does not create an attorney-client relationship. You should consult directly with an attorney for individual advice regarding your particular situation. I am not your lawyer under any circumstances.
Carol V. Calhoun Posted October 19, 2015 Posted October 19, 2015 Has anyone heard anything about when the IRS is likely to announce the new limits? Employee benefits legal resource site The opinions of my postings are my own and do not necessarily represent my law firm's position, strategies, or opinions. The contents of my postings are offered for informational purposes only and should not be construed as legal advice. A visit to this board or an exchange of information through this board does not create an attorney-client relationship. You should consult directly with an attorney for individual advice regarding your particular situation. I am not your lawyer under any circumstances.
Doghouse Posted October 20, 2015 Posted October 20, 2015 We received a flash email yesterday from Ferenczy Benefits Law Center saying that the official announcement was made, but I haven't seen it myself.
Tom Poje Posted October 21, 2015 Author Posted October 21, 2015 I tried a google search and haven't seen anything yet, though except for the fact of 'confirmation by the IRS' it seems a moot point since the adjustments to the limits are set forth in the regulations. somehow or other I was 'zapped' from Benefits Link a few months and had to be 'restored' (ha ha ha, I think I show as a member since 2015) but I believe I go back to 1997, and back then there used to be a Q and A Column board as well. My only attempt at writing something was an article on how plan limits were determined (which I had no clue so it required some research) shortly there after someone sent me a spreadsheet based on the article so I could check the numbers to see if they made sense. I tinkered a bit with that sheet since and have made it available in the past. all one needs to do is visit the one website for the consumer price index and enter the monthly values (e.g. even though the final numbers are based on July Aug Sept CPI figures you can enter Mar Apr May and you can generally know ahead of time if the rates will increase (sometimes months before. Takes all the fun out of waiting for the IRS to make an official announcement. what a learning experience, especially a few years ago when the limits should have dropped based on the regulations! note: there is a table I added recently for Taxable Wage Base. if there is no increase in Soc Security then there is no change to the TWB even though through the formula there could have been. indexed limits.xls
david rigby Posted October 21, 2015 Posted October 21, 2015 https://www.irs.gov/uac/Newsroom/IRS-Announces-2016-Pension-Plan-Limitations;-401(k)-Contribution-Limit-Remains-Unchanged-at-$18,000-for-2016 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.
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