Pension Plan Limits
Dollar limitations under the Internal Revenue Service code as follows:
- The elective annual deferral limit is $10,000.
- A highly compensated employee's annual compensation limit is $80,000.
- QUALIFIED PLANS and SIMPLIFIED EMPLOYEE PENSION (SEP) plan annual compensation limit for contributions is $160,000.
- SIMPLIFIED RETIREMENT ACCOUNT annual compensation limitation is $6000.
- SIMPLIFIED EMPLOYEE PENSION (SEP) plan annual compensation minimum is $400.
- State, local government, and tax-exempt organizations' annual limitation on deferrals under DEFERRED COMPENSATION PLANS is $8000.
- The DEFINED BENEFIT PLAN maximum annual benefit under Section 415 (b) (1) (a) is $130,000.
- The DEFINED CONTRIBUTION PLAN maximum annual contribution under Section 415 (c) (1) (a) is $30,000.
- The maximum account balance dollar amount permitted for determining the tax credit under an EMPLOYEE STOCK OPTION PLAN (ESOP) subject to a five-year period of distribution is $735,000.
Popular Insurance Terms
Work-related accident. Occupational accidents that injure employees are the responsibility of the employer and are covered by workers compensation insurance. In recent years, the term ...
Rights of employees who leave an employer with a qualified plan to withdraw their accumulated benefits. With a contributory plan, employees have immediate rights to their own contributions, ...
Same as term Insuring agreement: section describing coverages under a policy. Elsewhere in the policy other sections may restrict or exclude coverages. ...
Amount of life insurance required to purchase burial, probate, medical, and other costs associated with death. ...
Abuse by an insurer in an effort to avoid paying a claim filed by an insured, or to reduce the size of the payment. The national association of insurance commissioners (naic) has developed ...
One of four types of risks affecting the life insurance company as identified by the society of actuaries. This risk is associated with losses that the life insurance company may incur as ...
Group whole life insurance policy designed to reduce an employee's exposure to income tax on the value of life insurance provided by the employer. The policy separates the term element from ...
Periodic payments to an annuitant. ...
Same as term Master policy: single contract coverage on a group basis issued to an employer. Group members receive certificates as evidence of membership summarizing benefits provided. ...
Have a question or comment?
We're here to help.