IRS Publishes 2013 Pension Plan Limitations

On October 18, 2012, the IRS announced cost-of-living adjustments applicable to certain dollar limitations for employee pension benefit plans for 2013:

• The annual benefit limit for defined benefit plans is increased from $200,000 to $205,000.
• The annual addition limit for defined contribution plans is increased from $50,000 to $51,000.
• The Section 402(g) limit with respect to the exclusion for elective deferrals to a 401(k), 403(b) or 457 is increased from $17,000 to $17,500.
• The annual compensation limit under Sections 401(a)(17), 404(l), 408(k)(3)(C) and 408(k)(6)(D)(ii) is increased from $250,000 to $255,000.
• The dollar limit for defining key employees in a top-heavy plan under Section 416(i)(1)(A)(i) remains unchanged at $165,000.