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.
|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|
|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|