November 2000 Vol. V, No. 2
ERISA, EMPLOYEE BENEFITS AND EXECUTIVE COMPENSATION NEWSLETTER
The Internal Revenue Service has announced the following 2001 dollar limits for qualified plans and other tax-favored retirement plans (some of which could change if Congress passes pension reform legislation):
|Maximum annual payout from a defined benefit plan at the Social Security normal retirement age||$135,000||$140,000|
|Maximum annual contribution to an individual’s defined contribution account||$30,000||$35,000|
|Maximum Section 401(k) and Section 403(b) elective deferrals||$10,500||$10,500|
|Maximum amount of annual compensation that can be taken into account for determining benefits or contributions under a qualified plan||$170,000||$170,000|
|Test to identify highly compensated employees||$85,000||$85,000|
The Social Security Administration has announced the following 2001 inflation-adjusted dollar tests and limits for Social Security taxes and benefits:
for Social Security Tax
|Earnings Test (amount that can be earned before benefits are reduced)
Under Age 65 ($1 is withheld for every $2 in earnings over this amount)
|Maximum Social Security benefit for a single worker retiring at age 65||1,433/mo.||1,433/mo.|
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 Christopher J. Sowden, Attorney M. Edward Chalé or Attorney Katharine Butler Nesta.
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 as advertising.