Chamberlain, Hrdlicka, White, Williams & Aughtry
United States:
IRS Announces Cost Of Living Adjustments For Dollar Limitations Under Pension Plans And Other Retirement-Related Matters
20 November 2020
Chamberlain, Hrdlicka, White, Williams & Aughtry
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The IRS announced the cost of living adjustments for dollar
limitations under pension plans and other retirement-related
matters. See Notice 2020-79, https://www.irs.gov/pub/irs-drop/n-20-79.pdf.
In IR-2020-244,
https://content.govdelivery.com/accounts/USIRS/bulletins/2a7d379,
also provides dollar limitation cost of living adjustments for Both
IRAs and pension plans, as well.
In Revenue Procedure 2020-45 the IRS announced the inflation
adjustments that will apply to various fringe benefits in 2021. https://www.irs.gov/pub/irs-drop/rp-20-45.pdf
Unsurprisingly, most of our dollar limits go unchanged as the
cost of living adjustments are impacted by economic factors. Of
note, the annual compensation limit under §§ 401(a)(17),
404(l), 408(k)(3)(C), and 408(k)(6)(D)(ii) is increased from
$285,000 to $290,000.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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