NEWSLETTERS
Volume
1, Issue 1
....................
April 2000
| Cost
of Living Adjustments |
| LIMIT |
1999 |
2000 |
LIMIT |
1999 |
2000 |
| Defined Benefit
Plans - The maximum dollar limitation for annual benefits under defined
benefit plans under IRC Section 415(b)(1)(A). The limitation for annual
benefits is the lesser of $90,000 (as adjusted for inflation) or 100% of
the participant’s average compensation for his high 3 years. |
$130,000 |
$135,000 |
401(k)/403(b)/Existing
SARSEP
Elective Deferral Limit
- The limitation on cumulative elective deferrals to a 401(k), 403(b) tax
deferred annuity, simplified employee pension in a tax year, as coordinated
under IRC Section 402(g)(1). |
$10,000
|
$10,500
|
| 403(b) Catch
up limit - The special catch-up election for employees participating
in a 403(b) tax deferred annuity who have had at least 15 years of service
with an educational organization, hospital, home health agency, health
and welfare service agency, church or convention or association of churches. |
$13,000 |
$13,500 |
Compensation
Limit - The annual limit of compensation that may be taken into account
for contribution purposes in accordance with IRC Section 401(a)(17). |
$160,000
|
$170,000
|
| Defined Contribution
Plan 415 Dollar Limit - The dollar limitation for annual additions
under defined contribution plans under IRC Section 415(c)(1)(A). The limitation
for annual additions is the lesser of $30,000 (as adjusted for inflation)
or 25% of compensation. |
$30,000 |
$30,000 |
Definition
of Highly Compensated Employees - The compensation threshold used for
determining highly compensated employees under IRC Section 414(q)(1)(B). |
$80,000
|
$85,000
|
| 457 Deferral Limits
- The limitation of deferrals to 457 plans under IRC Sections 457(b)(2)
and (c)(1). Contributions under an eligible 457 deferred compensation plan
are limited to the lesser of 33 1/3% of includible compensation of $8,000. |
$8,000
|
$8,000
|
SIMPLE Retirement
Accounts - Compensation taken into account that an employee may elect
to defer under a SIMPLE retirement plan described in IRC Section 408(p)(2). |
$6,000
|
$6,000
|
|
|
|
Compensation
for SEPs - Compensation taken into account to determine eligibility
for simplified employee pensions (SEPs). |
$400
|
$450
|
The Social Security Administration also released its cost of living
adjustments on October 19, 1999:
Taxable Wage Base - 1999
2000
Maximum amount of earnings subject $72,600
$76,200
Released by the Internal Revenue Service in its October 1999 announcement
detailing cost-of-living adjustments to certain dollar limits for retirement
plans. These adjustments went into effect January 1, 2000. This information
is provided to you by Administrative Retirement
Services, Inc. If you have additional questions, please call
us at 630-469-2030.
© Administrative
Retirement Services, Inc. 2000
Published
by Administrative Retirement Services, Inc., Copyright 2001 by Administrative Retirement Services, Inc. Reproduction
in whole or in part is prohibited except by written permission. All rights
are reserved. Information has been obtained by Administrative Retirement
Services, Inc. from sources believed to be reliable. However, because of
the possibility of human or mechanical error by our sources, Administrative
Retirement Services, Inc. or others, Administrative Retirement Services,
Inc. does not guarantee the accuracy, adequacy, or completeness of any
information and is not responsible for any errors or omissions or the result
obtained from the use of such information. Readers should seek specific
advice before acting with regard to the subjects mentioned here.
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