February 7, 1992
TO: PENSION MEMBERS NO. 2-92
RE: IRS ANNOUNCES 1992 COST-OF-LIVING ADJUSTMENTS FOR PENSION
PLAN LIMITATIONS
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Enclosed is Internal Revenue Service News Release IR-92-3,
which sets forth the cost-of-living adjustments for certain
pension plan limitations.
The maximum limitation on benefits under Internal Revenue
Code section 415(c)(1)(A) for defined benefit plans increases
from $108,963 to $112,221. The limitation on contributions to
defined contribution plans remains unchanged at $30,000, because
that figure cannot be adjusted for inflation until the defined
benefit limit reaches $120,000.
Other changes include:
The limitation on elective deferrals for 401(k)
plans increases from $8,475 to $8,728.
The amount of compensation subject to the
Simplified Employee Pension (SEP) discrimination
provisions and the limitation on the amount of
annual income which can be taken into account under
Code sections 401(a)(17) and 404(l) increases from
$222,220 to $228,860.
The excess distribution threshold amount under Code
section 4980A(c)(1) increases to $140,276 from
$136,304.
The limitations found in the definition of highly
compensated employee in Code section 414(q)
increase to $93,518 from $90,803 and to $62,345
from $60,535.
Certain other limits were also changed as set forth in the
News Release.
We will keep you informed of further developments.
David J. Mangefrida, Jr.
Assistant Counsel - Tax
Attachment