The Internal Revenue Service announced on Oct. 19 the annual cost-of-living adjustments affecting dollar limitations and thresholds for pension plans and other retirement-related items (i.e., IRAs, SIMPLE plans, etc.) for the 2013 tax year. In general, many of the pension plan limitations will change for 2013 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment.
Increases in the IRS annual limits on contributions and changes in the definitions of key employees and HCEs always represent a good opportunity to touch base with your clients.
Some limits and thresholds will remain unchanged in 2013 because the increase in the index did not meet the statutory thresholds that trigger their adjustment. Click here for a complete rundown of the 2013 changes.
