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Plan Limits

October 28, 2014 by  
Filed under Uncategorized

COMMON RETIREMENT PLAN DOLLAR LIMITATIONS

2021 2020 2019
401(k), 403(b), Profit Sharing Plans
Elective Deferral Limit 19,500 19,500 19,000
Catch-up Contributions 6,500 6,500 6,000
Compensation Limit 290,000 285,000 280,000
Annual Addition Limit 58,000 57,000 56,000
General
Taxable Wage Base 142,800 137,700 132,900
Highly Compensated Employee 130,000 130,000 125,000
Key Employee:
Officer 185,000 185,000 180,000
1% Owner 150,000 150,000 150,000

Restatement

May 22, 2014 by  
Filed under Uncategorized

PLAN RESTATEMENTS

Pre-Approved Defined Contribution Plans

The majority of profit sharing and 401(k) plans are on pre-approved plan documents.  These documents are required to be restated on a six year cycle as determined by the IRS.

All pre-approved defined contribution plan documents were required to be restated by April 30, 2016 to incorporate the provisions from the Pension Protection Act of 2006 (PPA).   We are currently in the Post PPA (Cycle 3) restatement window.  All plans must be restated by July 31, 2022.

Individually Designed Plans

All ESOPs we administer are individually designed plans drafted by an attorney. Some profit sharing and 401(k) plans are also individually designed plans.  Individually designed plans were on a five year restatement cycle.  The IRS intends to eliminate the five-year remedial amendment cycles for individually designed plan starting in 2017.

Last Digit of Plan Sponsor’s EIN Plan Cycle Last Day to File
1 or 6 A 1/31/2017
2 or 7 B 1/31/2013
3 or 8 C 1/31/2014
4 or 9 D 1/31/2015
5 or 0 E 1/31/2016

 

Please contact KJ Retirement Consultants, LLC at (651) 797-3440 if you are not sure whether your plan document is an individually designed plan or a pre-approved plan.