Here is your latest FYI: Employee Benefits
Update from Cindy Van Bogaert, Partner and Chair of the Employee
Benefits Practice Group at Boardman Law Firm LLP.
The IRS announced
its 2007 cost-of-living adjustments for pension plans in a press
release dated October 18, 2006. These limits also affect some aspects
of non-pension benefit plans. See: http://www.irs.gov/newsroom/article/0,,id=163616,00.html
The deferral limit under Code Section 402(g) increases from $15,000
in 2006 to $15,500 in 2007. (Catch up contributions are unchanged
at $5,000 in 2007.)
The compensation limit under Code Section 401(a)(17) increases
from $220,000 in 2006 to $225,000 in 2007.
The annual addition contribution limit under Code Section 415
for individuals in 401(k) plans increases from $44,000 in 2006
to $45,000 in 2007.
The highly compensated employee limit under Code Section 414(q)
is unchanged at $100,000 in 2007.
The limit used in determining key employees under Code Section
416 is increased from $140,000 in 2006 to $145,000 in 2007.
The Social Security Wage Base (maximum earnings taxable) for 2007
is $97,500. (See http://www.ssa.gov/pressoffice/factsheets/colafacts2007.htm.)
This FYI is not legal advice. Individuals should seek advice based
on their particular circumstances from their own counsel. Nothing
in this FYI is intended to be used, and no information can be used,
for the purpose of avoiding penalties under the Internal Revenue
Code, or promoting, marketing, or recommending to another party
any transaction or matter addressed in this FYI.
If you have any questions or need assistance, please contact Cindy
Van Bogaert at (608) 281-7543 or cvanbog@boardmanlawfirm.com.
Would you like to have FYI: Employee Benefits Update sent
directly to your e-mail inbox? If so, please send your request,
with e-mail address, to Cindy Van Bogaert at cvanbog@boardmanlawfirm.com. |
