After years or relatively low and stable inflation, the 2022 retirement plan benefit limits just announced in IRS Notice 2021-61 stand apart with a notable increase due to the higher inflation seen over the last few months. Broadly speaking, the limit increases will lead to higher qualified plan benefits for highly-paid employees while increasing tax-deferred […]Read More… from What’s the Effect of 2022 Retirement Plan Limits?
Category: profit sharing plan
What’s the Effect of 2021 IRS Retirement Plan Limits?
IRS Notice 2020-79 just announced the 2021 retirement plan benefit limits and there are minimal changes since 2020. However, even static IRS limits have implications for employer-sponsored retirement plans. Here is a table of the main limits, followed by our analysis of the practical effects for both defined contribution (DC) and defined benefit (DB) plans. […]Read More… from What’s the Effect of 2021 IRS Retirement Plan Limits?
What’s the Effect of 2020 IRS Retirement Plan Limits?
IRS Notice 2019-59 just announced the 2020 retirement plan benefit limits and there are many changes since 2019. What does it all mean for employer-sponsored retirement plans? Here is a table of the main limits, followed by our analysis of the practical effects for both defined contribution (DC) and defined benefit (DB) plans. […]Read More… from What’s the Effect of 2020 IRS Retirement Plan Limits?
What’s the Effect of 2019 IRS Retirement Plan Limits?
IRS Notice 2018-83 just announced the 2019 retirement plan benefit limits, and there are many changes since 2018. What does it all mean for employer-sponsored retirement plans? Here is a table of the primary benefit limits, followed by our analysis of the practical effects for both defined contribution (DC) and defined benefit (DB) plans. Qualified […]Read More… from What’s the Effect of 2019 IRS Retirement Plan Limits?
Professional Firm Retirement Plans and the New QBI Tax Deduction
Qualified retirement plans were a good deal before the December 2017 Tax Cuts and Jobs Act. For many professional firms, they’re now better than ever. Here’s the new part: many owners of pass-through businesses like S corporations, LLCs and sole proprietors are eligible for a 20% deduction on Qualified Business Income (QBI), essentially non-W2 business […]Read More… from Professional Firm Retirement Plans and the New QBI Tax Deduction
What’s the Impact of 2017 IRS Retirement Plan Limits?
The IRS just announced the 2017 retirement plan benefit limits, and there are some notable changes from 2016. What does it all mean for employer-sponsored retirement plans? Here is a table summarizing the primary benefit limits, followed by our analysis of the practical effects for both defined contribution (DC) and defined benefit (DB) plans. Qualified […]Read More… from What’s the Impact of 2017 IRS Retirement Plan Limits?
False alarm! IRS withdraws controversial proposed cross-testing regulation provisions
A couple of months ago, the IRS proposed some changes to the §1.401(a)(4) nondiscrimination testing regulations. On Thursday, they withdrew the part of those proposed regulations that was bad news for plan sponsors, as noted in our prior post. We are pleased the IRS has reconsidered the unintended consequences benefit formula restrictions and “facts and […]Read More… from False alarm! IRS withdraws controversial proposed cross-testing regulation provisions
Surprises in the proposed cross-testing regulations
On January 29th, the IRS proposed revisions to the nondiscrimination testing regulations of §1.401(a)(4). The title of proposed regulations (and most of the attention generated by them) is focused on the relief for closed defined benefit (DB) plans. This post summarizes the proposed changes that would affect more than just closed DB plans. Most of them are […]Read More… from Surprises in the proposed cross-testing regulations
What’s the Impact of 2016 IRS Retirement Plan Limits?
The IRS just announced the 2016 retirement plan benefit limits, and there are virtually no changes from 2015. What does it all mean for employer-sponsored retirement plans? Below is a table summarizing the primary benefit limits, followed by our analysis of the practical effects for both defined contribution (DC) and defined benefit (DB) plans. Qualified […]Read More… from What’s the Impact of 2016 IRS Retirement Plan Limits?
What’s the Impact of 2015 IRS Retirement Plan Limits?
The IRS just announced the 2015 retirement plan benefit limits and we’re seeing some modest increases from 2014. What does it all mean for employer-sponsored retirement plans? This post analyzes the practical effects for both defined contribution (DC) and defined benefit (DB) plans, followed by a table summarizing the limit changes. Changes affecting both DB […]Read More… from What’s the Impact of 2015 IRS Retirement Plan Limits?