IRA/ROTH IRA/ESA · SEP · SIMPLE IRA ·
Mini 401(k) · ROTH 401 (k) · Profit Sharing · Defined Benefit 412(i) ·
403(b) TSA + Pension Law Update (PPA 2006)
We provide design and implementation services for all forms of Pension
and/or Retirement Plans, in conjunction with many of the nations leading
sponsors and Administrators.
A Brief Overview of What Retirement Plans Are and the Various Types:
Retirement Plans are generally referred to as either Qualified or
Non-Qualified Plans, meaning that they either do or do not come under the
rules, regulations, requirements and protections of ERISA (the Employee
Retirement Income Security Act of 1974).
The reason
that plans subject to ERISA are asset protected, is because there is a
Trust created to assure the benefits of a Plan and employees interests in
those Plans. The assets for Plans of a one-person company, or an
owner-only company, may not enjoy the same level of protection as if the
business also had multiple employees, as the primary thrust of any asset
protection afforded under ERISA Qualified Plans is for the covered
employees rather than owners or principles.
Non-ERISA Covered Plans ("Non-Qualified") are generally not
asset protected from creditors and function under a Custodial structure.
Examples include a: Traditional IRA (only Rollover IRAs from ERISA covered
Plans are asset protected from litigation, whereas Contributory IRAs are
not); ROTH IRA; SIMPLE; SEP (Simplified Employee Pension - a variation of
an IRA); 403b/TSA (these plans are an evolving area and it is uncertain as
to whether or not they may fall under the asset protection of ERISA. They
are moving towards being the same as ERISA covered 401k Plans. A 403b with
employer contributions is likely to fall under ERISA, but employee salary
deferral 403b Plans are not); etc.
ERISA Covered Plans ("Qualified") are generally asset
protected from creditors and function under a Trustee structure. Examples
include a: 401k Group & Single Employer 401k Plans; Money Purchase; Profit
Sharing (New Comparability); Defined Benefit; 412(e)3 Defined Benefit
Plans (historically best known as 412i Plans - fully guaranteed and funded
with either a Fixed Annuity, Whole Life Insurance or a combination of the
two).
Please contact us for your specific needs at: 1.800.482.5347.
Click on any of the following Pension/Retirement
Plan names for more detailed explanations of each type (Links are N/A at
this time - PLEASE CALL US TO DISCUSS A PLAN THAT IS RIGHT FOR YOU:
IRS Retirement Plan Limitations for
all 401(k),
403(b), Profit Sharing & Defined Benefit Plans
| Qualified Plan Limitations |
2011 |
2012 |
| DEFERRAL LIMITS |
|
|
Elective Deferrals
Limit for 401k, 403b, 457
IRC 402(g) |
$16,500 |
$17,000 |
| Catch-up Contributions
- IRC 414(v) |
$5,500 |
$5,500 |
| BENEFITS &
COMPENSATION |
|
|
| Annual Additions
for Defined Contribution Plans IRC 4159(c) |
$49,000 |
$50,000 |
| Limit on Annual
Benefits for Defined Benefits Plans IRC 415(b) |
$195,000 |
$200,000 |
| Annual Compensation
Limit - IRC 401(a)(17) |
$245,000 |
$250,000 |
Highly Compensated Employee Threshold
IRC 414(q) |
$110,000 |
$115,000 |
| Key Employee Limit
- IRC 416(i) |
$160,000 |
$165,000 |
| SIMPLE Retirement
Plan Limit - IRC 408(p) |
$11,500 |
$11,500 |
| SOCIAL
SECURITY/MEDICARE |
|
|
| Social Security (Taxable) Wage Base
(Old Age & Survivors) |
$106,800 |
$110,100 |
| Medicare Wage Base |
No
Limit |
No
Limit |
Click Here for: Selected Pension Law Updates & the Pension Protection
Act of 2006 (PPA)
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