November 1999 Vol IV No.1

The Internal Revenue Service has announced the following 2000 dollar limits for qualified plans and other tax-favored retirement plans.

 1999  2000
Maximum annual payout from a defined plan at the social security normal retirement age  $130,000  $135,000
Maximum annual contribution to an individual's defined contribution account  $30,000  $30,000
Maximum elective Section 401(k) and 403(b) deferrals  $10,000  $10,500
Maximum amount of annual compensation that can be taken into account for determining benefits or contributions under a qualified plan  $160,000  $170,000
Test to identify highly compensated employees  $80,000  $85,000

The Social Security Administration has announced the 2000 inflation-adjusted dollar tests and limits for Social Security benefits:

Wage Base: 1999  2000
 for Social Security Tax  $72,600  $76,200
 for medicare  No Limit  No Limit
Earnings Test (amount that can be earned before benefits are cut)  
Age 65-69 ($1 is withheld for every $3 in earnings over this amount)  $15,500/yr.  $17,000/yr.
Under Age 65 ($1 is withheld for every $2 in earnings over this amount)  $9,600/yr.  $10,080/yr.

This newsletter is provided for informational purposes only. It is not offered as or intended to constitute legal advice. Under the Rules of the Supreme Judicial Court of Massachusetts, this material may be considered advertising.

Marcia S. Wagner, Esq. & Associates, P.C. is pleased to announce that Marcia Wagner has recently authored a complete revision to The Bureau of National Affairs Tax Management Portfolio entitled "Plan Disqualification and ERISA Litigation"; published articles for the Massachusetts Bar Association Taxation Section Newsletter, Law Firm Partnership and Benefits Report, Massachusetts Society of Certified Public Accountants Newsletter, and presented a paper to the American Bar Association at Stanford Law School. She also conducted seminars as follows: The 29th Annual Pension Trust and Employee Benefits Seminar at University of South Carolina, "Investment Advice v. Investment Education"; Institute for International Research, (New York, NY), "The Next Generation of Client Retention - Enhancing Retention Through Partnership Management"; Jewish Labor Committee, "Cash Balance Pensions Plans: New Directions? New Dangers?"; Lorman Business Center, Inc. (Bedford, NH), "Recordkeeping and Reporting under ERISA"; American Law Institute-American Bar Association -Basic Law of Pensions, Welfare Plans and Deferred Compensation", (Boston, MA), Topics: Participants' Rights for Administrative Claims Procedures and Implementing the Rollover Rules; "Investment Management Institute & Institute of Management & Administration, Inc. (Pasadena, California and New York, New York), "Investment Advice vs. Investment Education: Legal Risks, Opportunities & Dilemmas - How the Law is Evolving"; International Foundation of Employee Benefit Plans-Certificate Series, (Towers Perrin, Voorhees, N.J. and Employee Benefits Certificate Credit Course, New York, NY), "Retirement Plan Basics,"; Wachovia Bank Institutional Trust and Retirement Services Client Conference (Williamsburg, Virginia), "Client Symposium: Investment Education vs. Advice for Retirement Plans"; Lorman Business Center, Inc. (Manchester, NH), "Employee Discharge and Documentation"; and Institute for International Research, Institutional Retirement and Savings Plan Series, (New Orleans, LA), "The 1999 Congress on Defined Contribution Plans". She also was quoted in Massachusetts Lawyers Weekly.

Attorneys Marcia S. Wagner has taught the fall semester course in Pension Law for Bentley College.

Our firm is strongly committed to providing the highest quality legal advice and is dedicated to protecting the interests of our clients.

In the event you desire legal advice, consultation or additional information, please contact Attorney Marcia S. Wagner, Attorney M. Edward Chale, or Attorney Katharine L. Butler.