Pursuing perfection,
           achieving excellence.

Plan Limits

October 28, 2014 by  
Filed under Uncategorized

COMMON RETIREMENT PLAN DOLLAR LIMITATIONS

2022 2021 2020
401(k), 403(b), Profit Sharing Plans
Elective Deferral Limit 20,500 19,500 19,500
Catch-up Contributions 6,500 6,500 6,500
Compensation Limit 305,000 290,000 285,000
Annual Addition Limit 61,000 58,000 57,000
General
Taxable Wage Base 147,000 142,800 137,700
Highly Compensated Employee 135,000 130,000 130,000
Key Employee:
Officer 200,000 185,000 185,000
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 currently 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 but the IRS eliminated that pre-set schedule.  Plan restatements are now coordinated with the ERISA attorney.

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.