Compliance January 5, 2012

IRS Updates Covered Compensation for Retirement Plan Contributions

The Internal Revenue Service has issued Revenue Ruling 2012-5 with the table of covered compensation for the 2012 plan year.
Reported by

The revenue ruling provides tables of covered compensation under § 401(l)(5)(E) to be used for determining contributions to defined benefit plans and permitted disparity in defined contribution plan contributions.  

To determine 2012 plan year covered compensation, the taxable wage base is $110,100, up from $106,800 in 2011. Permitted disparity allows for larger contributions or benefits with respect to compensation in excess of the Social Security wage base.    

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In determining an employee’s covered compensation for a plan year, the taxable wage base for the plan year is the taxable wage base in effect as of the beginning of the period.   

Revenue Ruling 2012-5 is available at http://www.irs.gov/pub/irs-drop/rr-12-05.pdf.
Products January 5, 2012

CBIZ Acquires More Retirement Business

CBIZ, Inc. purchased the employee benefits and retirement book of business from Advantage Benefit Planning (ABP) of Pleasantville, New Jersey, effective December 30, 2011.
Reported by

The purchase of the employee benefits and retirement book of business from ABP will add approximately $900,000 in revenues to CBIZ with the addition of two employees, including principal Vaughan Reale. 

CBIZ provides its clients with financial services including accounting, tax and consulting, internal audit, merger and acquisition advisory and valuation services. Employee services include employee benefits consulting, property and casualty insurance, retirement plan consulting, payroll, life insurance, HR consulting and executive recruitment. CBIZ also provides outsourced technology staffing and support services, healthcare consulting and medical practice management.   

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The company’s services are provided through more than 140 offices in 36 states.

 

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