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| ...from the HR Perspective |
| Human Resource Update | July 2012 |
Down the Track
There's an old story about the poor fellow who was waiting for a long train to pass at a two track railroad crossing. He was getting impatient as boxcar after boxcar went by. When he finally saw the end of the train approaching, he stepped on the accelerator and took off across the tracks - only to be hit by a train coming the other way. We are about to be hit by the second train.
The media has spent much time discussing the "Bush tax cuts" which will lapse at the end of this year unless Congress and the President take action. However, there has been little or no discussion about the new and additional taxes that will be imposed under the Affordable Health Care Act, or "Obamacare".
While most understand that Obamacare becomes effective in 2014, there are many aspects of the law that come into play earlier. At this time, we will deal only with the additional personal taxes that will go into effect on January 1, 2013.
The additional taxes are twofold: 1) an increase in the Part A Medicare tax, and 2) a new Part A Medicare tax on unearned income (UIMCT - unearned income Medicare contribution tax).
The Additional Tax
The increase in Part A Medicare tax is 0.9%, nearly 1%, on wages, other compensation or self-employment income earned income over: $200,000 for a single person, $250,000 for those married and filing jointly, $125,000 for a married person filling separately, $200,000 for head of household, and $200,000 for a qualifying widow with a dependent child. These limits are not adjusted for inflation.
The good news for employers is that they are not saddled with this additional tax. As you would expect, employers are required to withhold the additional tax once compensation that has been paid exceeds the $200,000 limit. Under the program as it presently stands, those filing jointly face a very real possibility of being under-withheld. For example, if both spouses earn $190,000 (for a total of $380,000) the additional .09% would not have been withheld on any of their income. As the additional tax is due on their combined income over $250,000, or $130,000, this results in an under-withheld Medicare tax liability of $1,170. No voluntary additional Medicare tax withholding is permitted. The couple can meet this new tax liability by increasing their regular Federal withholding by a like amount and applying that to the Medicare tax deficiency when completing their tax return. In an unlikely over-withholding situation, the surplus may be credited against the individual's regular Federal income tax liability.
The New Tax
The new unearned income Medicare contribution tax, UIMCT, of 3.8% is imposed on the lesser of (1) net investment income or (2) the excess of modified adjusted gross income (MAGI) over the threshold amounts mentioned above. Unearned income includes: gross income from interest, dividends, royalties and rents, other than such income derived in the ordinary course of a trade or business to which the UIMCT does not apply, income from a trade or business to which the UIMCT applies, net gain (to the extent taken into account in computing taxable income) attributable to the disposition of property other than property held in a trade or business to which the UIMCT does not apply. Remember that the UIMCT applies to passive investments. It may not apply to active trade or business activities conducted by a sole proprietor, partnership or S corporation (determination of what your unearned income may be and the application of the UIMCT should be made with your tax advisor). In general, while the UIMCT does not apply to payments from tax qualified retirement plans such as pension and 401(k) plans, IRAs and Roth IRAs, those retirement payments will likely increase an individual's MAGI which in turn may result in the amount of other investment income being subject to the UIMCT.
Looking at this from a different angle, the UIMCT should be considered an increase in the Capital Gains tax as it will apply to the net gain on the sale that, together with other applicable income, breach the above limits. For those concerned about the possible gains on your primary residence, at the moment, it appears that the first $250,000 of gain on a principal residence ($500,000 for couples) is exempt from the UIMCT.
Other incomes may be affected such as the undistributed net investment income of estates and trusts. Different limits apply here, and as the highest limit is much lower than the individual limit, consideration might be given to the distribution of that income to lower the combined UIMCT.
The Cumulative Effect
The cumulative effect of the new and additional Medicare taxes, and the lapsing of the "Bush" tax cuts is substantial. The combined tax rates, for those who are at the top marginal rate, will increase by about 15% (36.45% to 41.95%), capital gains taxes by nearly 60% (15% to 23.8%), and dividends by nearly 300% (15% to 43.4%). This does not include the tax increasing effect of the "disappearing exemptions and itemized deductions" as they can vary greatly.
The foregoing relates our concerns as benefit and compensation consultants and as with all tax matters you should contact your tax advisor. Estate planning, estate and trust structure, capital gain timing, income deferral, passive income, and general investment policy are some, but not all, areas that you might wish to address before 2013 begins.
Tax Planing and Benefit Review
As these new taxes can significantly increase the tax liability of your senior executive staff (and decrease their available income), if your company has not considered tax planning as a perquisite, perhaps now is the time to do so; and if your company does provide that service, perhaps now is a good time to see if the benefit will cover the in-depth review needed at this time. Now might also be a good time to review retirement plans, other benefit plans and deferred compensation programs.
If you have any questions in regard to the above, please call. We would be pleased to assist you in dealing with these and any other challenges that you face.
Sincerely,
Michael F. Yates,
President
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If you find value in this newsletter please let us know. Feel free to call me with a comment and/or ask a question at any time (908-689-4200) or send me an email (myates@mfyco.com). We offer this timely information as another benefit of your relationship with our company. If you feel a friend or colleague would benefit from receiving our newsletter, please feel free to forward a copy.
You can view all of our newsletters by clicking the 'newsletter archives' link at our company website www.mfyco.com. |
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Internal Revenue Service Notice 2012-46
Notice requirements for funding-related benefit limitations in single-employer defined benefit pension plans.
On July 3, 2012 the IRS issued Notice 2012-46. Notice 2012-46 provides guidance in the form of questions and answers with respect to the notice requirements of §101(j) of the Employee Retirement Income Security Act of 1974 (ERISA), which requires that notice be provided to participants and beneficiaries relating to certain limitations on benefits in pension plans imposed under §206(g) of ERISA,1 as added by the Pension Protection Act of 2006 and Internal Revenue Code (IRC) §436.
Background
§101(j) of ERISA requires the plan administrator of a single-employer defined benefit plan to provide a written notice to plan participants and beneficiaries, generally within 30 days after the plan becomes subject to the benefit limitations of §206(g)(1) or §(3) of ERISA (relating to unpredictable contingent event benefits and prohibited payments). In addition, in the case of a plan that becomes subject to the benefit limitations of § 206(g)(4) of ERISA (relating to the cessation of benefit accruals), the section 101(j) notice must be provided within 30 days after the earlier of the valuation date for the plan year for which the plan's adjusted funding target attainment percentage (AFTAP) is less than 60% or the date such percentage is presumed to be less than 60% under the rules of §206(g)(7) of ERISA. §502(c)(4) of ERISA provides that the Secretary of Labor may assess a civil penalty of not more than $1,000 a day for each violation by any person of the notice requirement under §101(j) of ERISA.
§101(c)(1)(A)(ii) of the Worker, Retiree, and Employer Recovery Act of 2008, Public Law 110-458 (122 Stat. 5092) (WRERA), amended §101(j) of ERISA to authorize the Secretary of the Treasury, in consultation with the Secretary of Labor, to prescribe rules applicable to the notice requirements under §101(j) of ERISA.
1 §436 of the Internal Revenue Code (Code) has provisions that are parallel to the provisions in §206(g) of ERISA and which are identified in this notice in parentheses following the parallel ERISA provision. §401(a)(29) of the Code provides that, in the case of a defined benefit plan (other than a multiemployer plan) to which the minimum funding requirements of § 412 apply, the plan is not a qualified plan unless the plan meets the requirements of § 436.
§206 of ERISA (§ 436 of the Code) provides benefit limitations that depend on a plan's funding level, which is measured by the plan's AFTAP, as determined under §206(g)(9)(B) of ERISA (§ 436(j)(2) of the Code). In general, a plan's AFTAP is based on the plan's funding target attainment percentage (FTAP) under §303(d)(2) of ERISA (§ 430(d)(2) of the Code) for the plan year. Generally, the plan's FTAP for a plan year is a fraction (expressed as a percentage), the numerator of which is the value of plan assets for the plan year (after subtraction of the plan's funding balances), and the denominator of which is the funding target of the plan for the plan year. The plan's AFTAP for a plan year is determined by adding the aggregate amount of purchases of annuities for employees (other than highly compensated employees, within the meaning of Code § 414(q)) made by the plan during the two preceding plan years to the numerator and the denominator of the fraction used to determine the FTAP.
Under §206(g)(1) of ERISA (§ 436(b) of the Code), a plan is required to provide that, if a participant is entitled to an unpredictable contingent event benefit payable with respect to any event occurring during a plan year, such benefit may not be paid if the plan's AFTAP for the plan year is less than 60% or would be less than 60% taking into account the occurrence of the unpredictable contingent event benefit. §206(g)(1)(C) of ERISA (§ 436(b)(3) of the Code) defines an unpredictable contingent event benefit as any benefit payable solely by reason of a plant shutdown (or similar event, as determined by the Secretary of the Treasury) or an event other than the attainment of any age, performance of any service, receipt or derivation of any compensation, or occurrence of death or disability.
Under §206(g)(2) of ERISA (§ 436(c) of the Code), a plan amendment increasing the liabilities of the plan by reason of an increase in benefits, establishment of new benefits, changing the rate of benefit accrual, or changing the rate at which a benefit accrual becomes nonforfeitable generally cannot take effect in a plan year if the plan's AFTAP for the plan year is less than 80% or would be less than 80% taking into account such amendment. The notice requirements of §101(j) of ERISA do not apply as a result of an amendment that causes the plan to become subject to the benefit limitations in §206(g)(2).
§206(g)(3) of ERISA (§ 436(d) of the Code) restricts a plan's ability to make "prohibited payments" if the plan's AFTAP is below 80% or the plan sponsor is a debtor in bankruptcy. §206(g)(3)(B) of ERISA (§ 436(d)(5) of the Code) provides that a "prohibited payment" is generally:
(1) any payment in excess of the monthly amount paid under a single life annuity (plus any social security supplements described in the last sentence of §204(b)(1)(G) of ERISA (§ 411(a)(9) of the Code)) to a participant or beneficiary whose annuity starting date occurs during any period that a limitation under §206(g)(1)(A) or (B) of ERISA (or §436(d)(1) or (2) of the Code) is in effect;
(2) any payment for the purchase of an irrevocable commitment from an insurer to pay benefits; and
(3) any other payment specified by the Secretary of the Treasury by regulations.
However, a prohibited payment does not include a payment of a benefit which under §203(e) of ERISA (§ 411(a)(11) of the Code) (relating to benefits with a present value that does not exceed $5,000) may be immediately distributed without the consent of the participant.
Under §206(g)(3)(A) of ERISA (§ 436(d)(1) of the Code), a plan is required to provide that the plan is not permitted to make any prohibited payment for a plan year after the valuation date for the year if the plan's AFTAP for the plan year is less than 60%. Under §206(g)(3)(C) of ERISA (§ 436(d)(3) of the Code), if a plan's AFTAP is at least 60% but less than 80%, the plan must provide that the plan is not permitted to pay any prohibited payment that is in excess of 50% of the amount of the payment that could be made but for the benefit limitation (or, if less, the present value of the maximum guarantee with respect to the participant under §4022 of ERISA) (partially prohibited payments).
Under §206(g)(3)(B) of ERISA (§ 436(d)(2) of the Code), a plan is required to provide that, if the plan sponsor is a debtor in a case under title 11 of the United States Code (or similar Federal or State law), the plan is not permitted to pay any prohibited payment until the plan's enrolled actuary certifies that the plan's AFTAP for the plan year is not less than 100%.
The limitations on prohibited payments under §206(g)(3) of ERISA (§ 436(d) of the Code) do not apply to a plan for any plan year if the terms of the plan, as in effect for the period beginning on September 1, 2005, and ending with such plan year, provide for no benefit accruals with respect to any participant during that period.
Under §206(g)(4) of ERISA (§ 436(e) of the Code), a plan is required to provide that, if the plan's AFTAP is below 60% for a plan year, all benefit accruals cease as of the valuation date for the plan year.
Sections 206(g)(1)(B), 206(g)(4)(B), and 206(g)(5) of ERISA (§§ 436(b)(2), 436(e)(2), and 436(f) of the Code) set forth rules relating to special contributions that are permitted to be made in order to avoid benefit limitations (§436 contributions). Under § 1.436-1(f)(2)(ii)(B) of the Income Tax Regulations, a §436 contribution must be designated as such at the time it is contributed to the plan. Under §206(g)(5)(B) of ERISA (§ 436(f)(2) of the Code), a §436 contribution is an actual contribution that is treated as separate from a minimum required contribution under § 430 and is disregarded in determining the maximum addition to a prefunding balance under § 430(f)(6). See § 1.436-1(f)(2) generally for rules relating to §436 contributions. See also §206(g)(5)(C) of ERISA (§ 436(f)(3) of the Code), which describes situations in which an employer is deemed to have made an election under §303(f) of ERISA (§ 430(f)(5) of the Code) to reduce the plan's funding standard carryover balance or prefunding balance.
Under §206(g)(7) of ERISA (§ 436(h) of the Code), special presumptions apply in certain situations for purposes of applying the benefit limitations under §206(g) of ERISA (§ 436 of the Code). Under §206(g)(7)(A) of ERISA (§ 436(h)(1) of the Code), if a benefit limitation has been applied in the preceding plan year, then the AFTAP for the current plan year is generally presumed to be equal to the prior year's AFTAP until the plan's enrolled actuary certifies the actual AFTAP for the current plan year. Further, under §206(g)(7)(B) of ERISA (§ 436(h)(2) of the Code), if no certification is made before the first day of the 10th month of the current plan year, then, for purposes of applying these benefit limitations, that day is deemed to be the valuation date of the plan and the plan's AFTAP is conclusively presumed to be less than 60% as of that date. Under §206(g)(7)(C) of ERISA (§ 436(h)(3) of the Code), if a benefit limitation did not apply to a plan in the prior plan year but the plan's AFTAP for the prior plan year was not more than 10 percentage points greater than an AFTAP that would have caused the plan to be subject to that benefit limitation, and if the plan's enrolled actuary has not certified the plan's actual AFTAP for the current plan year before the first day of the 4th month of the current plan year, then, until the actuary so certifies, that day is deemed to be the valuation date for the current plan year and the plan's AFTAP is presumed to be equal to a percentage that is 10 percentage points less than the plan's AFTAP for the preceding plan year.
Final regulations under IRC§436 were published on October 15, 2009 in the Federal Registerat 74 FR 53004. These regulations also apply for purposes of the parallel rules in §206(g) of ERISA. The regulations use the term §436 measurement date (defined in §1.436-1(j)(8) of the Federal Regulations) to identify the dates on which a benefit limitation under §436 of the Code (§206(g) of ERISA) may apply or cease to apply. A §436 measurement date might occur due to a certification of the plan's AFTAP issued by the enrolled actuary for the plan or due to the application of a presumption. See IRC §1.436-1(a)(4)(ii)(B), (c)(3), (d)(3)(ii)(A)(1), (d)(3)(ii)(C), and (d)(6) for certain optional plan provisions that are permitted with respect to IRC §436 (and the parallel rules in §206(g) of ERISA).
Please click here to access the Questions & Answers.
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Invitation to MFYCO Facebook
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We hope everyone is enjoying the 2012 Olympic games! We thought it might be fun to share some facts about the games. After reading, please head over to our facebook page and tell us what events you have enjoyed (or have not enjoyed) watching so far!
· The first opening ceremonies were held during the 1908 Olympic Games in London.
· The Olympic flag was created by Pierre de Coubertin in 1914. It contains five interconnected rings on a white background. The five rings symbolize the five significant continents and are interconnected to symbolize the friendship to be gained from these international competitions. The rings, from left to right, are blue, yellow, black, green, and red. The colors were chosen because at least one of them appeared on the flag of every country in the world. The Olympic flag was first flown during the 1920 Olympic Games.
· The Olympic medals are designed especially for each individual Olympic Games by the host city's organizing committee. Each medal must be at least three millimeters thick and 60 millimeters in diameter. Also, the gold and silver Olympic medals must be made out of 92.5 percent silver, with the gold medal covered in six grams of gold. Roughly 3,600g of gold worth more than $193,250 will be used to plate the medals that will be awarded at this year's games. The last Olympic gold medals that were made entirely out of gold were awarded in 1912.
· James B. Connolly (United States), winner of the hop, step, and jump (the first final event in the 1896 Olympics), was the first Olympic champion of the modern Olympic Games.
· Because of World War I and World War II, there were no Olympic Games in 1916, 1940, or 1944.
· During the opening ceremony, the procession of athletes is always led by the Greek team, followed by all the other teams in alphabetical order (in the language of the hosting country), except for the last team which is always the team of the hosting country.
· This year's games will feature 205 countries that are sending more than 10,000 athletes to compete in 300 events in 30 venues across the UK.
· This will be the first Olympics filmed in HD TV.
· The Olympic Stadium will have a capacity of 80,000 during the Games.
· 510 adjustable hurdles, 600 basketballs, 800 water polo balls and 2,400 footballs, 1,630 discs for the weightlifting competition, 432 pairs of boxing gloves, 270,000 clay shotgun targets and 200 gate poles for the canoe slalom will be used throughout this year's games.
· Equestrian is the only Olympic sport in which men and women compete against each other on equal terms.
· Badminton, table tennis, and handball are the only official sports in which the U.S. has never won a medal. (Hopefully this year we change that!)
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We invite you to share our newsletter. (It's a lot to think about!)
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Health Care Reform's Summary of Benefits and Coverage (SBC)
Follow up to our September, 2011 Article Health Care Reform's Summary of Benefits and Coverage (SBC)
Delayed Effective Date for Health Care Reform's Summary of Benefits and Coverage (SBC)
On February 14, 2012, the Department of Health and Human Services, Labor, and Treasury (collectively, the "Departments") jointly issued final regulations and an SBC template and uniform glossary for the Summary of Benefits and Coverage (SBC). The Final Regulations delay compliance with the SBC requirements to September 23, 2012 extended from March 23, 2012. The SBC is a standardized summary of benefits and explanations of coverage format for group health plans and health insurers offering group coverage. On March 19 and May 11, 2012, the Departments issued additional guidance in a Question and Answer format (Q&A) to clarify certain aspects of the Final Regulations (Q&A March 19, Q&A May 11).
Some group health plans including grandfathered plans may be required to furnish SBCs as early as September 23, 2012, depending on when their plan year and open enrollment period fall.
When SBC Requirement Applies
The SBC requirement applies beginning with the first open enrollment period beginning on or after September 23, 2012 for participants and beneficiaries enrolling or reenrolling or re-enrolling through open enrollment. For calendar plan years, SBCs may be required during open enrollment in 2012 for the 2013 plan year, depending on when the open enrollment period begins. If a plan's open enrollment period begins before September 23, 2012, the SBC would not be required until the 2013 open enrollment for the 2014 plan year. If an employer accelerates its typical open enrollment period for the 2013 plan year to avoid the SBC requirement that acceleration could be challenged.
For individuals enrolling other than through open enrollment, such as new hires and individuals who enroll through special enrollment, the SBC requirement applies beginning on the first day of the first plan year that begins on or after September 23, 2012 (i.e. January 1, 2013 for calendar year plans).
Who Must Receive SBC
The SBC must be provided to all applicants, enrollees, current participants and policyholders or certificate holders and COBRA-qualified beneficiaries. If enrollees share the same address only one SBC needs to be delivered to that address. If a beneficiary's last known address is different than the participant's last known address, a separate SBC is required to be provided to the beneficiary at the beneficiary's last known address.
Method of Distribution
Paper or electronic form is acceptable.
Modifications
Any material changes to the content of the current SBC including plan terms, coverage, cost-sharing or the imposing of new referral requirements must be provided to enrollees at least 60 days before the effective date of the changes. An independent notice describing the modification or providing an updated SBC satisfies the notice requirement. If a timely notice is delivered pursuant to the Final Regulations, the ERISA summary of material modifications requirement is also satisfied.
Glossary Requirement
The final uniform glossary may not be modified and must be provided to participants and beneficiaries in either paper or electronic form within seven business days of request.
Exemptions
The SBC preempts any state-provided standards regarding benefit and coverage summaries that provide less information to consumers than what is required to be provided by the SBC.
Penalties
The penalty for a group health plan or health insurance issuer covered by the SBC for willfully failing to provide the required information is a fine of up to $1,000 for each failure. A failure is considered a separate offense for each plan participant, subject to an additional fine. Additionally, a failure to provide the SBC may also result in an excise tax of $100 per day for each individual affected by the failure.
Plan Sponsors Responsibility
The plan administrator or insurer as well as the plan sponsor or plan administrator for self-insured plans, bears the responsibility for providing the SBC. Therefore, plan sponsors and plan administrators should start working with their third party administrators and/or insurance providers to allocate responsibility for preparing and distributing the SBC.
When Must the SBC be Distributed
A plan must distribute the SBC as follows:
Open Enrollment - The SBC must be provided along with open enrollment materials. If renewal is automatic (i.e. "evergreen" election) and there is no opportunity to change coverage options, renewal is automatic, and the SBC must be furnished no later than 30 days prior to the first day of the new plan year. For insured plans, if the new policy is not issued 30 days prior to the beginning of the plan year, the SBC must be provided as soon as practicable, but no later than seven business days after the issuance of the policy.
Initial Enrollment - An SBC for each benefit package for which the participant or beneficiary is eligible must be provided as part of any written application materials that are distributed by the plan. If a plan does not distribute written application materials, the SBC must be distributed no later than the first date the participant is eligible to enroll in coverage.
Upon Request - The plan must provide or send within seven business days the SBC to a participant or beneficiary upon request.
Special Enrollment - The plan must provide the SBC to special enrollees within 90 days after enrollment pursuant to special enrollment rights. Individuals contemplating special enrollment may request an SBC, which would have to be provided consistent with the foregoing rule.
What SBCs Need to Provide
The summaries must be in a uniform format, be easily understood and must include uniform definitions of standard insurance and medical terms. The explanation must also describe any cost-sharing, exceptions, reductions, and limitations on coverage, and use examples to illustrate common benefits scenarios, all in four pages.
Appearance
· 4 page length limit (double sided)
· 12-point font or greater
· Header and footer need only be included on first and last page
· Minor adjustments to row or column size format is permitted as long as the information presented is still understandable
Language
· The new summary must be presented in a "culturally and linguistically appropriate manner"
· Terminology must be understandable by the average person
· In specified counties plans must provide interpretive services and must provide written translations of the SBC upon request in certain non-English languages. In addition, English versions of the SBC must disclose the availability of language services in the relevant language and must disclose how to access the language services provided by the plan. This must be done in counties in which 10% of the population residing in the county is literate only in the same non-English language. Currently Spanish, Chinese, Tagalog and Navajo are trigger languages.
Content
· uniform definitions of standard insurance and medical terms (consistent with definitions to be developed by the Health and Human Services Secretary (HHSS) so that health plan consumers can compare coverage and understand the coverage terms and any exceptions to the coverage terms;
· a coverage description, including cost sharing for (1) each of the categories of essential health benefits: Ambulatory patient services; Emergency services; Hospitalization; Maternity and newborn care; Mental health and substance use disorder services; Prescription drugs; Rehabilitative and habilitative services and devices; Laboratory services; Preventive and wellness services (including chronic disease management); and Pediatric services (including oral and vision care) and other benefits identified by the HHSS;
· coverage exceptions, reductions, and limitations;
· cost-sharing provisions, including descriptions of deductibles, coinsurance, and co-pays;
· renewability and coverage continuation provisions;
· a "coverage facts label" that includes examples illustrating common benefit scenarios, such as pregnancy or chronic medical conditions, as well as any related cost-sharing (all based on recognized clinical practice guidelines);
· for coverage beginning on or after January 1, 2014, a statement as to whether the plan (1) provides minimum essential coverage and (2) ensures that its share of the total allowed benefit cost under the plan is no less than 60 percent of those costs;
· a statement that the outline is a policy summary and that consumers should consult the plan's coverage document to determine the plan's governing contractual provisions; and
· contact information for additional questions and obtaining a copy of plan or insurance policy, certificate or contract of insurance;
· for plans that maintain one or more provider networks, an Internet address for obtaining a list of network providers;
· for plans that use prescription drug formulary, an Internet address for obtaining information on prescription drug coverage; and
· an internet address for obtaining the uniform glossary, a contact phone number to obtain a paper copy of the glossary and a statement that a paper copy of the glossary is available upon request.
A separate SBC is not necessary for each tier of coverage or for each add-on to major medical coverage (e.g. FSAs, HRAs, HSAs or wellness programs). Plans may combine information for different coverage tiers and add-ons into a single SBC as long as the appearance is understandable.
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Call: 908-689-4200 to contact a
MFYCO professional consulting associate.
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Salary Increases in 2013
According to the Conference Board's survey of United States salary increases for 2013, the U.S. projected salary increases for 2013 will average 3%. |
What would you like to see in a future issue?
Contact our office with your suggestions.
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Retirement Plan Limits
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2012 |
2011 |
2010 | |
Maximum Annual Defined Benefit |
$200,000 |
$195,000 |
$195,000 | |
Maximum DC Annual Addition ($$) |
$50,000 |
$49,000 |
$49,000 | |
Maximum 401(k) Deferrals |
$17,000 |
$16,500 |
$16,500 | |
Older EE Catch-Up Contribution |
$5,500 |
$5,500 |
$5,500 | |
Maximum Plan Compensation |
$250,000 |
$245,000 |
$245,000 | |
Highly Compensated Threshold |
$115,000 |
$110,000 |
$110,000 | |
Key Employee in a Top-Heavy Plan |
$165,000 |
$160,000 |
$160,000 | |
SSA Social Security Wage Base |
$110,100 |
$106,800 |
$106,800 | |
PBGC Maximum Monthly Guarantee |
$4,653.41 |
$4,500 |
$4,500 | |
PBGC Maximum Annual Guarantee |
$55,840.92 |
$54,000 |
$54,000 | |
Maximum DC Annual Addition (%) |
100% |
100% |
100% | |
Social Security Tax - Employee
Social Security Tax - Employer |
4.2%
6.2% |
4.2%
6.2% |
6.2%
6.2% | |
Medicare Tax |
1.45% |
1.45% |
1.45% | |
DC Plan Deduction Limit |
25% |
25% |
25% | |
Definition of Compensation for DC
Plan Deduction Limit |
Includes Deferrals |
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about MFYCO ...
- Michael F. Yates & Company, Inc. can help you with a variety of services ranging from retirement plans to providing results-oriented survey instruments, training and development programs for your employees. Our products and services are intended to help you maximize the effectiveness of your Human Resources function.
- These products and services incorporate our years of experience so that you receive rapid results and exceptional value. From onsite consulting, to strategic business integration, to Web enablement, we understand how Human Resources can be applied to solve your problems and achieve your goals. As a result, we can help you get the most out of your investment and turn your most precious resource into a competitive advantage.
- We offer Consulting, Retirement Planning, Pension and 401(K) both qualified and non qualified Plans, Welfare Plans, Communications, Computer Systems, Executive Plans, Compensation, Mergers, Acquisitions, Divestitures and Other Services.
We offer a true and honest, Client Partnership.
Take the Michael F. Yates & Company, Inc. challenge! Call us today ... 908-689-4200
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How to Track Government Recovery Spending
"The Board shall establish and maintain...a user-friendly, public-facing website to foster greater accountability and transparency in the use of covered funds. The website...shall be a portal or gateway to key information relating to the Act and provide connections to other government websites with related information."
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Michael F. Yates & Company, Inc.
_________________
101 Belvidere Avenue
P.O.Box 7
Washington, NJ 07882-0007
908-689-4200
fax: 908-689-6300
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Our staff and firm are proud members
of the following professional organizations:
Society of Actuaries
American Society of Pension Professionals & Actuaries
Society for Human Resource Management
GAPS (Global Association Pension Services)
WorldatWork
American Management Association
National Federation of Independent Business
Better Business Bureau
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The site ("from the HR perspective" hence herein referred to as MFYCO.com) is made available by Michael F. Yates & Company Incorporated. All content, information and software provided on and through 'from the HR perspective' and MFYCO.com ("Content") may be used solely under the following terms and conditions ("Terms of Use").
YOUR USE OF THIS WEBSITE CONSTITUTES YOUR AGREEMENT TO BE BOUND BY THESE TERMS AND CONDITIONS. IF YOU DO NOT AGREE TO THESE TERMS, YOU SHOULD IMMEDIATELY DISCONTINUE YOUR USE OF THIS SITE.
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"Human Resources provides the leadership, supportive services, guiding principles, policies, structures and standards needed for a quality organization to survive in today's business environment."
MFYCO PRIVACY POLICY
Michael F. Yates & Company, Inc.
believes strongly in protecting the privacy of its users.
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