Subject: BenefitsLink Newsletter 11/20/95 *** BenefitsLink Newsletter for November 20, 1995 *** 1996 Cost of Living Adjustments to Benefits-Related Internal Revenue Code Limitations (Source: IRS News Release 95-57) Social Security Taxable Wage Base............ $62,700 (up from $61,200 in 1995) 4980(c)(1)(B) Excess Distributions Threshhold..... 155,000 (up from $150,000 in 1995) 401(k) Elective Deferral Cap.......... 9,500 (up from $9,240 in 1995) 401(a)(17) Compensation Cap............. 150,000 (unchanged from 1995) 414(q) Highly Compensated Employee (based on pay only)....... 100,000 (unchanged from 1995) (top-paid group)........... 66,000 (unchanged from 1995) (officer).................. 60,000 (unchanged from 1995) 415 Defined Benefit Limit........ 120,000 (unchanged from 1995) 408(k) SEP Minimum Compensation......... 400 (unchanged from 1995) WHAT'S NEW ON BENEFITSLINK -- 11/20: "Bad Loans Can Create Grave Plan Problems," from the Pension Plan Administrator by Panel Publishers, Inc. 11/19: A series of articles from Retirement Planning Associates of Waterford CT: ERISA Fiduciary Responsibilities Keeping Records of Plan Participants Avoiding Distribution Problems and Pitfalls GATT Includes Pension Changes Participation Requirements for Qualified Plans Pension Trends Division of Pension Benefits in Divorce Choosing Retirement Plan Features Five Reasons to Sponsor a Qualified Plan Impact of the New Compensation Limit Non-Qualified Deferred Compensation Arrangements MORE CONTRIBUTIONS INVITED -- If you would like to publish a benefits-related article, column or newsletter on the Internet (without charge), please email me (Dave Baker) at erisa@magicnet.net (Netscape 2.0 users click here: erisa@magicnet.net). Thanks for making BenefitsLink a cooperative success! BenefitsLink is the national employee benefits Web page, at http://www.magicnet.net/benefits The above articles appear on the "What's New" page at http://www.magicnet.net/benefits/whatsnew.html To unsubscribe from this mailing list or to add a new subscriber, send an email to erisa@magicnet.net. ### Dave Baker BenefitsLink Administrator http://www.magicnet.net/benefits - The National Employee Benefits Web Page