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
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###
Dave Baker
BenefitsLink Administrator
http://www.magicnet.net/benefits - The National Employee Benefits Web
Page