One Last Chance to Repair Deferred Compensation Plan Issues
December 31, 2010 marks the closing of a window offered by the IRS to self-correct non-qualified deferred compensation programs (NQDC) for failure to comply with Internal Revenue Code Section 409A (409A). Although many employers have reviewed their programs for 409A compliance, some have not and should do so. Let's briefly look at the issue and what should be done before year end.
Click here to read more about section 409A and the consequences you may face if your company is not in compliance.
If you have any questions regarding 409A compliance, please feel free to contact Ted Ginsburg, JD, CPA by calling 440-449-6800.
Also, this month we would like to welcome Ted R. Ginsburg, JD, CPA, the newest member of Skoda Minotti's Compensation & Benefits Advisory Group.
Ted has over 25 years of experience in compensation and employee benefit programs. Most recently, he has focused on executive compensation consulting for both publicly-traded and privately-held employers, specializing in employment agreements, non-qualified deferred compensation plans, compensation related SEC filings, change-of-control programs and equity-based arrangements (including ESOPs and ESPPs).
To read Ted's full biography, please click here.
The Internal Revenue Service announced cost-of-living adjustments applicable to dollar limitations for pension plans and other items for tax year 2011, all of which are identical to the comparable amounts for 2010.
Code Section | 2011 | 2010 | 2009 | 2008 | 2007 |
401(a)(17)/404(l) Annual Compensation | $245,000 | $245,000 | $245,000 | $230,000 | $225,000 |
402(g)(1) Elective Deferrals | 16,500 | 16,500 | 16,500 | 15,500 | 15,500 |
408(k)(2)(C) SEP Minimum Compensation | 550 | 550 | 550 | 500 | 500 |
408(k)(3)(C) SEP Maximum Compensation | 245,000 | 245,000 | 245,000 | 230,000 | 225,000 |
408(p)(2)(E) SIMPlE Maximum Contributions | 11,500 | 11,500 | 11,500 | 10,500 | 10,500 |
409(o)(1)(C) ESOP limits | 985,000 195,000 | 985,000 195,000 | 985,000 195,000 | 935,000 185,000 | 915,000 180,000 |
414(q)(1)(B) hCE Threshold | 110,000 | 110,000 | 110,000 | 105,000 | 100,000 |
414(v)(2)(B)(i) Catch-up Contributions | 5,500 | 5,500 | 5,500 | 5,000 | 5,000 |
414(v)(2)(B)(ii) Catch-up Contributions | 2,500 | 2,500 | 2,500 | 2,500 | 2,500 |
415(b)(1)(A) DB limits | 195,000 | 195,000 | 195,000 | 185,000 | 180,000 |
415(c)(1)(A) DC limits | 49,000 | 49,000 | 49,000 | 46,000 | 45,000 |
416(i)(1)(A)(i) Key Employee | 160,000 | 160,000 | 160,000 | 150,000 | 145,000 |
457(e)(15) Deferral limits | 16,500 | 16,500 | 16,500 | 15,500 | 15,500 |
1.61-21(f)(5)(i) Control Employee | 95,000 | 95,000 | 95,000 | 90,000 | 90,000 |
1.61-21(f)(5)(iii) Control Employee | 195,000 | 195,000 | 195,000 | 185,000 | 180,000 |
219(b)(5)(A) IRA Contribution limit | 5,000 | 5,000 | 5,000 | 5,000 | 4,000 |
219(b)(5)(B) IRA Catch-up Contributions | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 |
Taxable Wage Base for Social Security | 106,800 | 106,800 | 106,800 | 102,000 | 97,500 |
For more informatiton on Cost-of-Living adjustments for qualified retirement plans, contact Dani Gisondo, CPA, principal in Skoda Minotti's Benefit Plan Audit Group by calling 440-449-6800.
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Comments for Employee Benefit Plan Audit and Compensation Bulletin - Winter 2010