Thursday, October 27, 2016

COST-OF-LIVING ADJUSTMENTS


COST-OF-LIVING ADJUSTMENTS
2017

Pension Plan and Related Limits
2016
2017
Pre-tax elective deferral maximum under IRC § 401(k), 403(b), and 457(b) plans
$18,000
$18,000
Age 50 and older “catch-up” adjustment for 401(k), 403(b), and governmental 457(b) plans and SEPs
$6,000
$6,000
Annual compensation limit under IRC §§ 401(a)(17), 404(l) and 408(k)
$265,000
$270,000
Annual benefit limit for defined benefit plans under IRC § 415(b)
$210,000
$215,000
Annual contribution limit for defined contribution plans under IRC § 415(c)
$53,000
$54,000
Highly compensated employee threshold for purposes of testing in the following year under IRC § 414(q)(1)(B)
$120,000
$120,000
Key employee threshold for officers for top heavy plan under IRC § 416(i)(1)(A)(i)
$170,000
$175,000
IRC § 430(c)(7)(D)(i)(II) amount for determining excess employee compensation for single-employer defined benefit plans where election has been made
$1,106,000
$1,115,000
ESOP account balance for five-year and one-year distribution rule under IRC § 409(o)(1)(C)(ii)
$1,070,000
and
$210,000
$1,080,000
and
$215,000
SEP pension compensation threshold under IRC § 408(k)
$600
$600
SIMPLE plan elective deferral limit under IRC § 408(p)(2)(E)
$12,500
$12,500
SIMPLE plan age 50 catch-up
$3,000
$3,000
Basic IRA/Roth IRA contribution limitation under IRC § 219(b)/§ 408A (age 50 $1,000 catch-up for IRAs does not have cost-of-living adjustment)
$5,500
$5,500
Phase-out for deductions for IRA for married couples filing jointly, in which the spouse who makes the IRA contribution is an active participant in an employer-sponsored retirement plan
$98,000 to $118,000
$99,000 to $119,000
Adjusted gross income (AGI) phase-out range for married joint filers taxpayers making contributions to a Roth IRA
$184,000 to $194,000
$186,000 to $196,000
AGI limit for retirement savings contributions (saver's) credit for married couples filing jointly
$61,500
$62,000
Health Savings Account contribution limits (single and family)
$3,350 and $6,750
$3,400 and $6,750
PBGC guaranteed benefit (monthly and yearly)
$5,011.33
$60,136
TBA
PBGC flat-rate premiums per participant
$64
$69
PBGC variable-rate premium per $1,000 of Unfunded Vested Benefits
$30
$34
Taxable wage base subject to FICA tax
$118,500
$127,200

Thursday, October 13, 2016

Employment Agreements (Including Severance, Parachute, Clawback, Noncompete and §409A Issues)

See "Employment Agreements (Including Severance, Parachute, Clawback, Noncompete and §409A Issues)" by Charles C. Shulman, at Tax Management Compensation Planning Journal 9-2-2016
Employment agreements, which are very common for executives and senior management, raise a number of issues relating to terms of employment, severance on termination, change in control, excess parachute tax under Internal Revenue Code §280G, noncompete provisions, clawback provisions, SEC disclosure requirements, and restrictions on nonqualified deferred compensation under §409A.
The terms of employment agreements and severance arrangements are of particular relevance in corporate transactions. Executives may be terminated as a result of a transaction, and the general severance provisions in the employment agreements may be triggered.
Severance provisions are often triggered on termination of employment only if there is also a change in control of the employer, or the amount of severance may be more generous if the termination occurs after a change in control. Some agreements may allow an employee to quit for any reason and still receive severance, if the quitting is in connection with a change in control. Employment and change in control agreements often provide that options will vest on a change in control typically even without a termination of employment.
http://www.ebeclaw.com/memos/Employment_Agreements_TMCPJ_9.2.16.pdf