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
|