2021 ESOP and Pension Plan Limits

The IRS has announced the 2021 pension plan limits, which includes the following: 

2020 ESOP and Pension Plan Limits

The IRS has announced the 2020 pension plan limits, including the following:

 

2019 ESOP and Pension Plan Limits

The IRS has announced the 2019 pension plan limits, including the following:

 

2018 ESOP and Pension Plan Limits

The IRS has announced the 2018 pension plan limits, including the following:

  • 401(k) Deferral Limit - $18,500
  • Annual Additions Limit - $55,000
  • Maximum Compensation Limit - $275,000
  • Catch-Up Contribution Limit - $6,000
  • Highly Compensated Employee - $120,000
  • ESOP 5-Year Distribution Threshold - $1,105,000
  • ESOP Additional Year Threshold - $220,000

2017 ESOP and Pension Plan Limits

The IRS has announced the 2017 pension plan limits, including the following:

  • 401(k) Deferral Limit - $18,000

  • Annual Additions Limit - $54,000

  • Maximum Compensation Limit - $270,000

  • Catch-Up Contribution Limit - $6,000

  • Highly Compensated Employee - $120,000

  • ESOP 5-Year Distribution Threshold - $1,080,000

  • ESOP Additional Year Threshold - $215,000

2016 ESOP and Pension Plan Limits

The IRS has announced the 2016 pension plan limits, including the following:

Cycle C2 ESOP Determination Letters

The Cycle C2 submission deadline for an ESOP Determination Letter is January 31, 2014.  Here is a quick review of the process.

Update on FASB ESOP Disclosure Requirements Effective in 2012

Review of ESOP Built-In Gains (BIG) Tax Rules from 2009 - 2013

Uncertainty for ESOP companies contemplating Converting from C Corporation to S Corporation continues.  One of the factors in considering a change is that assets sold within a period after the conversion from a C Corporation to an S Corporation may be subject to the IRC Section 1374 – Built-In Gains (BIG) Tax.  The holding period or “recognition period” depends on the year of the disposal of assets.

Another Look at the DOL ESOP Fiduciary Regulations

Yesterday we shared the latest timing update that the revised DOL ESOP Fiduciary Regulations will be available in July 2012 (or later)The Department of Labor Wants to Redefine “Fiduciary” to Include ESOP Appraisers. Why? discusses how the DOL has still not provided a meaningful analysis of the improper ESOP stock appraisals they cite nor quantified the extent of the problem.  The article provides an overview and analysis of the proposed regulations, discusses valuation industry recommendations, and provides an update on the status of the revised proposed regulations:

Keep Your ESOP On Track and On Time
12 Benefits of Incorporating an ESOP in your Business Exit Strategy

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