- The limitation used in the
definition of highly compensated employee under Section 414(q)(1)(B)
remains unchanged at $115,000.
- The dollar limitation under
Section 414(v)(2)(B)(ii) for catch-up contributions to an applicable
employer plan described in Section 401(k)(11) or Section 408(p) for
individuals ages 50 or older remains unchanged at $2,500.
- The annual compensation
limitation under Section 401(a)(17) for eligible participants in certain
governmental plans that, under the plan as in effect on July 1, 1993,
allowed COLAs to the compensation limitation under the plan under Section
401(a)(17) to be taken into account, is increased from $375,000 to
$380,000.
- The compensation amount under
Section 408(k)(2)(C) regarding simplified employee pensions (SEPs) remains
unchanged at $550.
- The limitation under Section 408(p)(2)(E)
regarding SIMPLE retirement accounts is increased from $11,500 to
$12,000.
- The limitation on deferrals under
Section 457(e)(15) concerning deferred compensation plans of state and
local governments and tax-exempt organizations is increased from $17,000
to $17,500.
- The compensation amount under
Section 1.61 21(f)(5)(i) of the Income Tax Regulations concerning the
definition of “control employee” for fringe benefit valuation purposes
remains unchanged at $100,000. The compensation amount under Section 1.61
21(f)(5)(iii) remains unchanged at $205,000.
- The dollar amount under Section
430(c)(7)(D)(i)(II) used to determine excess employee compensation with
respect to a single-employer defined benefit pension plan for which the
special election under Section 430(c)(2)(D) has been made is increased
from $1,039,000 to $1,066,000.
An updated table
of plan limitations will be made available at http://www.irs.gov/Retirement-Plans/COLA-Increases-for-Dollar-Limitations-on-Benefits-and-Contributions.
Rebecca Moore