indexed limits

[Tom Poje]

the Sept CPI-U was released today

so we should see

deferral = 18500

comp 275000

415 limit 55000

DB 220,000

no change to Key ee and HCE, they were very close

no change to catchup

(with my 'useless' spreadsheet)

indexed limits.xls

[Tom Poje]

and if the figures used to determine soc sec increase similarly (they use CPI-W) expect an increase of 2.0%, quite substantial. last month's estimate was 2.2% by the soc sec admin. (if I understand that formula correctly)

 

the calculation is done by comparing the CPI-W factors (for July-Aug-Sept)to last year's factors.

(239.668 – 235.057 / 235.057 x 100 = 1.96 percent (rounded to nearest tenth percent so 2 percent increase)

which of course means since they will be paying out more you will hear more doom and gloom about the fund.

Note if there was no increase in the prior year you would use the data from the prior year that there was an increase.

[Tom Poje]

Mr. Preston pointed out that there was an error in the spreadsheet.

one of the columns I added was for SIMPLE (a type of plan which I never worked on in my life)

the error has been corrected

Thanks Mike.

indexed limits.xls