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Plan Limits

October 28, 2014 by  
Filed under Uncategorized


2020 2019 2018
401(k), 403(b), Profit Sharing Plans
Elective Deferral Limit 19,500 19,000 18,500
Catch-up Contributions 6,500 6,000 6,000
Compensation Limit 285,000 280,000 275,000
Annual Addition Limit 57,000 56,000 55,000
Taxable Wage Base 137,700 132,900 128,400
Highly Compensated Employee 130,000 125,000 120,000
Key Employee:
Officer 185,000 180,000 175,000
1% Owner 150,000 150,000 150,000


May 22, 2014 by  
Filed under Uncategorized


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).   If your plan was not restated timely, the IRS is currently offering a 50% discount on the Voluntary Correction Program (VCP) filing fee through April 30, 2017.   The next required restatement period will begin in 2020.

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.