CPA & Business Advisory Blog

Employee Benefit Plan Audit and Compensation Bulletin – Winter 2010

One Last Chance to Repair Deferred Compensation Plan Issues

December 31, 2010 marks the closing of a window offered by the IRS to self-correct non-qualified deferred compensation programs (NQDC) for failure to comply with Internal Revenue Code Section 409A (409A).  Although many employers have reviewed their programs for 409A compliance, some have not and should do so.  Let's briefly look at the issue and what should be done before year end.

Click here to read more about section 409A and the consequences you may face if your company is not in compliance.

If you have any questions regarding 409A compliance, please feel free to contact Ted Ginsburg, JD, CPA by calling 440-449-6800.

Also, this month we would like to welcome Ted R. Ginsburg, JD, CPA, the newest member of Skoda Minotti's Compensation & Benefits Advisory Group.

Ted has over 25 years of experience in compensation and employee benefit programs. Most recently, he has focused on executive compensation consulting for both publicly-traded and privately-held employers, specializing in employment agreements, non-qualified deferred compensation plans, compensation related SEC filings, change-of-control programs and equity-based arrangements (including ESOPs and ESPPs).

 

To read Ted's full biography, please click here.
 

2011 Cost-of-Living Adjustments for Qualified Retirement Plans

The Internal Revenue Service announced cost-of-living adjustments applicable to dollar limitations for pension plans and other items for tax year 2011, all of which are identical to the comparable amounts for 2010.
 

Code Section

2011

2010

2009

2008

      2007

401(a)(17)/404(l) Annual Compensation

$245,000

$245,000

$245,000

$230,000

$225,000

402(g)(1) Elective Deferrals

16,500

16,500

16,500

15,500

15,500

408(k)(2)(C) SEP Minimum Compensation

550

550

550

500

500

408(k)(3)(C) SEP Maximum Compensation

245,000

245,000

245,000

230,000

225,000

408(p)(2)(E) SIMPlE Maximum Contributions

11,500

11,500

11,500

10,500

10,500

409(o)(1)(C) ESOP limits

985,000

195,000

985,000

195,000

985,000

195,000

935,000

185,000

915,000

180,000

414(q)(1)(B) hCE Threshold

110,000

110,000

110,000

105,000

100,000

414(v)(2)(B)(i) Catch-up Contributions

5,500

5,500

5,500

5,000

5,000

414(v)(2)(B)(ii) Catch-up Contributions

2,500

2,500

2,500

2,500

2,500

415(b)(1)(A) DB limits

195,000

195,000

195,000

185,000

180,000

415(c)(1)(A) DC limits

49,000

49,000

49,000

46,000

45,000

416(i)(1)(A)(i) Key Employee

160,000

160,000

160,000

150,000

145,000

457(e)(15) Deferral limits

16,500

16,500

16,500

15,500

15,500

1.61-21(f)(5)(i) Control Employee

95,000

95,000

95,000

90,000

90,000

1.61-21(f)(5)(iii) Control Employee

195,000

195,000

195,000

185,000

180,000

219(b)(5)(A) IRA Contribution limit

5,000

5,000

5,000

5,000

4,000

219(b)(5)(B) IRA Catch-up Contributions

1,000

1,000

1,000

1,000

1,000

Taxable Wage Base for Social Security

106,800

106,800

106,800

102,000

97,500

For more informatiton on Cost-of-Living adjustments for qualified retirement plans, contact Dani Gisondo, CPA, principal in Skoda Minotti's Benefit Plan Audit Group by calling 440-449-6800.
 

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