On October 18, 2012 the Internal Revenue Service (IRS) announced the cost-of-living adjustments (COLA) impacting tax-qualified pension plans for 2013. Similar to 2012, there are increases in most of the pension plan limitations as the cost-of-living index increase met the statutory thresholds that trigger adjustments. The following table highlights some of the key limits that affect tax-qualified pension plans.
|
Code Section |
2013 |
2012 |
| 401(a)(17)/404(l) Annual Compensation |
$255,000 |
$250,000 |
| 402(g)(1) Elective Deferrals |
17,500 |
17,000 |
| 414(v)(2)(B)(i) Catch-up Contributions |
5,500 |
5,500 |
| 415(b)(1)(A) Defined Benefit Plan Limit |
205,000 |
200,000 |
| 415(c)(1)(A) Defined Contribution Plan Limit |
51,000 |
50,000 |
| 457(e)(15) Deferral Limits |
17,500 |
17,000 |
| 414(q)(1)(B) Highly Compensated Employee Threshold |
115,000 |
115,000 |
| 409(o)(1)(C) ESOP Limits |
1,035,000 205,000 |
1,015,000 200,000 |
| 416(i)(1)(A)(i) Key Employee |
165,000 |
165,000 |
| 408(p)(2)(E) SIMPLE Max. Contributions |
12,000 |
11,500 |
| 414(v)(2)(B)(ii) SIMPLE Catch-up Contributions |
2,500 |
2,500 |
| 408(k)(2)(C) SEP Min. Compensation |
550 |
550 |
| 408(k)(3)(C) SEP Max. Compensation |
255,000 |
250,000 |
| 1.62-21(f)(5)(i) Control Employee |
100,000 |
100,000 |
| 1.62-21(f)(5)(iii) Control Employee |
205,000 |
205,000 |
| Social Security Tax Wage Base |
113,700 |
110,100 |
