[12874]
November 21, 2000
TO: PENSION MEMBERS No. 54-00
PENSION OPERATIONS ADVISORY COMMITTEE No. 85-00
RE: IRS ANNOUNCES COST-OF-LIVING ADJUSTMENTS TO PENSION PLAN
LIMITATIONS
The Internal Revenue Service has released tax year 2001 cost-of-living adjustments
applicable to various of the dollar limitations for pension plans. The limits that have been
adjusted include the following:
A. The section 415(b) limitation on the annual benefit under a defined
benefit plan is increased from $135,000 to $140,000.
B. The section 415(c) limitation for defined contribution plans is
increased from $30,000 to $35,000.
C. The section 408(p)(2) limit for SIMPLE plan accounts is increased
from $6,000 to $6,500.
D. The limitation on deferrals in sections 457 plan is increased from
$8,000 to $8,500.
Other limitations, including the section 402(g) limit on elective deferrals and the section
401(a)(17) annual compensation limit, remain unchanged for tax year 2001.
Russell G. Galer
Senior Counsel
Attachment
Note: Not all recipients receive the attachment. To obtain a copy of the attachment to which this memo refers, please
call the ICI Library at (202) 326-8304 and request the attachment for memo 12874. ICI Members may retrieve this
memo and its attachment from ICINet (http://members.ici.org).
Attachment (in .pdf format)