IRS Announces 2024 Pension Plan Limitations

In Employee Benefits, News by Edie E. Crump

The IRS announced cost-of-living adjustments for 2024 retirement plan contributions.  For 2024, the amounts that individuals will be able to contribute to retirement plans will increase from $22,500 to $23,000.  However, the catch-up contribution limit for employees age 50 and over will remain unchanged at $7,500.  This chart summarizes the limitations for 2024: Contribution Limits 2024 2023 Elective Deferral Limit – 401(k), 403(b) and 457(b) Plans $23,000 $22,500 Catch-Up Contribution Limit $7,500 $7,500 Elective Deferral Limit – SIMPLE Retirement Plan $16,000 $15,500 Catch-Up Contribution Limit – SIMPLE Retirement Plan $3,500 $3,500 Contribution Limit – IRA $7,000 $6,500 Catch-Up Contribution Limit …

IRS Announces 2020 Pension Plan Limitations

In Employee Benefits by Coolidge Wall

The IRS has announced cost-of-living adjustments for 2020 retirement plan contributions. For 2020, the amounts that individuals will be able to contribute to 401(k), 403(b), and 457(b) retirement plans will increase $500 to $19,500. The catch-up contribution limit for employees age 50 and over will also increase $500 to $6,500.  This chart summarizes the limitations for 2020 (amounts that changed for 2020 are shown in bold): Contribution Limits    2019    2020 Elective Deferral Limit – 401(k), 403(b) and 457(b) Plans                   $19,000         $19,500         …

IRS Announces 2019 Pension Plan Limitations

In Employee Benefits by Coolidge Wall

On November 1, 2018, the IRS announced cost-of-living adjustments for 2019 retirement plan contributions. For 2019, the amounts that individuals will be able to contribute to retirement plans will increase from $18,500 to $19,000. However, the catch-up contribution limit for employees age 50 and over will remain unchanged at $6,000. This chart summarizes the limitations for 2019: Contribution Limits 2019 2018 Elective Deferral Limit – 401(k), 403(b) and 457(b) Plans $19,000 $18,500 Catch-Up Contribution Limit $6,000 $6,000 Elective Deferral Limit – SIMPLE Retirement Plan $13,000 $12,500 Catch-Up Contribution Limit – SIMPLE Retirement Plan $3,000 $3,000 Contribution Limit – IRA $6,000 …

Did You Miss the Retirement Plan Restatement Deadline?

In Employee Benefits by Coolidge Wall

By April 30, 2016, profit sharing, 401(k), and money purchase pension plans using pre-approved IRS documents were required to restate their plans to comply with the Pension Protection Act of 2006. If an employer finds this year end that the company’s plan was not timely restated, the error can be corrected with the IRS. More importantly, if the error is found and corrected before April 30, 2017, the IRS fee to correct the error is reduced. Errors with retirement plans are corrected through the IRS voluntary correction program known as the Employee Plans Compliance Resolution System (“EPCRS”). An employer would …

IRS Extends Due Date for Furnishing Individual Reporting Statements under the Affordable Care Act

In Employee Benefits by Coolidge Wall

On November 18th, the Internal Revenue Service issued Notice 2016-70 which: Extends by 30 days the deadline for providing to employees the 2016 Forms 1095-B (Health Coverage) and 1095-C (Employer-Provided Health Insurance Offer and Coverage) from January 31, 2017 to March 2, 2017; and Extends certain good faith transition relief from penalties that apply to the 2016 ACA information reporting requirements. Form 1095-B must be furnished to individuals by insurers, employers with self-insured health plans, and certain other providers of minimum essential coverage. Form 1095-C must be provided by applicable large employers (those with 50 or more full-time employees, including …

IRS Announces 2017 Pension Plan Limitations

In Employee Benefits by Coolidge Wall

On October 27 the IRS announced cost-of-living adjustments for 2017 retirement plan contributions. For 2017, the amounts that individuals will be able to contribute to retirement plans will remain unchanged at $18,000. The catch-up contribution limit for employees age 50 and over will also remain unchanged at $6,000. IRA and SIMPLE retirement plan contribution limits will not change for 2017. Although individual contribution limits will not change for 2017, the IRS has adjusted the maximums that apply to the defined contribution plan annual addition limit, the defined benefit plan annual benefit limit, the annual compensation limit applicable for retirement plan …

The Ohio Supreme Court Brings the Sunshine Laws into the Technological Age

In Employee Benefits by Coolidge Wall

In May, the Ohio Supreme Court in White v. King, 2016-Ohio-2770, expressly provided that a meeting of a public body does not have to occur face to face. A meeting includes discussions that occur “telephonically, by video conference, or electronically by e-mail, text, tweet, or other form of communication.” A. Specific Facts of White v. King. In White v. King, one member of the Olentangy Local School District Board of Education, Adam White, filed suit against the Board claiming that they had violated the Open Meetings Act (R.C. 121.22). White had conducted an investigation into alleged improper expenditures by two …

The Importance of “Wrap” Documents – A Key to ERISA Compliance for Group Health and Welfare Plans

In Employee Benefits by Coolidge Wall

To ensure compliance with ERISA’s documentation and disclosure rules for health and welfare plans (medical, dental, vision, group term life insurance, and disability insurance plans), the plans must be set forth in written plan documents that meet specified content requirements. Although employers receive insurance policies or certificates of coverage from insurers or third party administrators, these documents rarely specify the named fiduciary, the procedures for amending the plan or the allocation of responsibilities for the operation and administration of the plan among the employer, the insurer, and the third party administrator. ERISA also requires employers to provide to each employee …

IRS Announces 2016 Pension Plan Limitations

In Employee Benefits by Coolidge Wall

On October 21 the IRS announced cost-of-living adjustments for 2016 retirement plan contributions. For 2016, the amounts that individuals will be able to contribute to retirement plans will remain unchanged at $18,000. The catch-up contribution limit for employees age 50 and over will also remain unchanged at $6,000. This chart summarizes the limitations for 2016: Contribution Limits 2016 2015 Elective Deferral Limit – 401(k), 403(b) and 457(b) Plans $18,000 $18,000 Catch-Up Contribution Limit $6,000 $6,000 Elective Deferral Limit – SIMPLE Retirement Plan $12,500 $12,500 Catch-Up Contribution Limit – SIMPLE Retirement Plan $3,000 $3,000 Contribution Limit – IRA $5,500 $5,500 Catch-Up …

IRS Affordable Care Act Penalty Relief for Small Employers Expires Soon

In Employee Benefits by Coolidge Wall

Previously the IRS announced that employer payment plans would violate the Affordable Care Act and subject an employer to penalties. An employer payment plan is a plan under which an employer reimburses an employee for all or part of the premium for an individual health insurance policy. The penalty for this arrangement is $100 per participant/per day. In February the IRS granted small employers (those with fewer than 50 full-time employees) a break from the penalty through June 30, 2015. If a small employer is still reimbursing employees for individual health insurance premiums, the employer must stop the reimbursements no …