IRS Announces 2001 Pension Plan Limitations | AccountingWEB

IRS Announces 2001 Pension Plan Limitations

The IRS has announced its annual cost-of-living adjustments with regard to dollar limitations for pension plans for the year 2001.

These new pension plan adjustments are subject to change should Congress enact legislation that would affect these amounts, and such information will be reported here as soon as it is available.

For now, the new limitations, which are effective as of January 1, 2001, are as follows:

  • The annual benefit under a section 415(b)(a)(A) defined benefit plan is $140,000, up from $135,000.

  • The annual limitation for section 415(c)(1)(A) defined contribution plans is $35,000, up from $30,000.

  • The dollar amount for determining the maximum account balance in an employee stock ownership olan with a 5-year distribution period is increased to $780,000, up from $755,000. The dollar amount used to determine the lengthening of the 5-year distribution period is $155,000, up from $150,000.

  • The annual compensation limitation for eligible participants in certain governmental plans that allow cost-of-living adjustments is $285,000, up from $275,000.

  • The limitation for section 408(p)(2)(A) simple retirement accounts is $6,500, up from $6,000.

  • The limitation on deferrals for deferred compensation plans of state and local governments and tax-exempt organizations, as defined in section 457(b)(2) and (c)(1) is $8,500, up from $8,000.

  • The compensation amount under section 1.61-21(f)(5)(iii) is $155,000, up from $150,000.
  • Other pension plan limitations remain unchanged from their 2000 limitations. This includes limitations for elective deferrals to section 401(k) plans, the federal government's Thrift Savings Plan, and IRA accounts.

    Wait, there's more!
    There's always more at AccountingWEB. We're an active community of financial professionals and journalists who strive to bring you valuable content every day. If you'd like, let us know your interests and we'll send you a few articles every week either in taxation, practice excellence, or just our most popular stories from that week. It's free to sign up and to be a part of our community.
    Premium content is currently locked

    Editor's Choice

    WHAT KIND OF FIRM ARE YOU?
    As part of our continued effort to provide valuable resources and insight to our subscribers, we're conducting this brief survey to learn more about your personal experiences in the accounting profession. We will be giving away five $50 Amazon gift cards, and a $250 Amazon gift card to one lucky participant.
    This is strictly for internal use and data will not be sold
    or shared with any third parties.