In Notice 2014-5, the IRS provided temporary relief from the Code’s nondiscrimination rules for certain defined benefit plans that are closed to new participants. (This is sometimes referred to as a “soft freeze.”). The temporary relief allows employers who sponsor a closed defined benefit plan and a defined contribution plan to comply with Code’s nondiscrimination […]
AM
As reported in Part 1 of our End of Year Plan Sponsor “To Do” Lists, Section 162(m) of the Internal Revenue Code limits the deduction a public company may take for compensation payable to “covered employees” to $1,000,000 per year. “Performance-based compensation” that meets the requirements of Section 162(m) is not subject to this limitation. […]
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On October 31, 2013, the IRS announced the cost-of-living adjustments that will affect the dollar limitations for pension and other retirement plans for the 2014 tax year. Notably, the $17,500 annual contribution limit for employees who participate in 401(k) plans remains the same for 2014. Maximum Qualified Retirement Plan Dollar Limits 2013 2014 Limit […]
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