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Recent Developments In Benefit Plans

Are you up to date with the latest 2013 Cost of Living Adjustments and Social Security taxable wage base increases?

2013 Cost-of-Living Adjustments. The IRS has released the annual cost-of-living adjustments for various retirement plan limitations. Most of the limitations have increased for 2013 — with the exceptions of catch-up contribution amounts and compensation determining key and highly compensated employees.

Also, the Social Security Administration announced a $3,600 increase in the Social Security taxable wage base effective January 1, 2013. This change affects plans that consider Social Security in determining benefits or contributions.

  2013 2012
Defined contribution plan dollar limit on annual additions $51,000 $50,000
Defined benefit plan limit on annual benefits $205,000 $200,000
Maximum compensation used to determine benefits or contributions $255,000 $250,000
401(k), SARSEP, 403(b) and 457 plan deferrals/catch-up $17,500/$5,500 $17,000/$5,500
SIMPLE deferrals/catch-up $12,000/$2,500 $11,500/$2,500
Compensation defining highly compensated employee $115,000 $115,000
Compensation defining key employee (officer) $165,000 $165,000
Social Security taxable wage base $113,700 $110,100



 

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