We are pleased to announce the 2015 increases to the dollar limits that most affect tax qualified retirement plans. You can see the full table on our website , or use this link to print the New COLA Adjustments.
|401(k) / 403(b) Contribution Limit:||$18,000||$17,500|
|401(k) /403(b) Catch-Up Limit:||$6,000||$5,500|
|Total Plan Contributions Limit (all sources):||$53,000||$52,000|
|SIMPLE IRA / 401(k) Contribution Limit:||$12,500||$12,000|
|SIMPLE IRA / 401(k) Catch-Up Limit:||$3,000||$2,500|
|Maximum Compensation – Plan Purposes:||$265,000||$260,000|
|HCE Compensation Test Threshold:||$120,000||$115,000|
|Social Security Taxable Wage Base:||$118,500||$117,000|
If you have adopted a PASI, LLC plan document for a 401(k) or a Profit Sharing Plan, here’s some important information you need to know.
During the period from 2008 through 2010, all qualified plans utilizing a “pre-approved” plan document (such as the one distributed by PASI) were required to restate that plan in its entirety. Plan sponsors must adopt these new “PPA Restatements” between May 1, 2014 and April 30, 2016.
These newly restated plan documents serve two purposes:
- The effects of new legislation and regulation are incorporated into the body of the plan document, which avoids the need for cumbersome
- Our document provider can incorporate new provisions into the Plan that make it easier for us to meet your objectives.
Whenever there is a big change like this required, it presents the perfect opportunity to make any changes to your plan that you’ve been thinking of, but didn’t execute yet. We are going to be working on plan restatements starting in the new year, so that your plan documentation will be ready and complete far ahead of the 2016 deadline.
It’s a great time to update your plan and discover if any of the new features required under the new law are applicable to your plan. If you’re thinking of any other changes (i.e. changes to eligibility, loans, etc.) or other distributions, this is the time to get them squared away.
Please call PASI with any questions about the PPA Restatement process, or to discuss any changes you could, or should be, making to your plan now.
For an easy, integrated 401k and Payroll solution, talk to us about PASI Payroll.
Choosing PASI Payroll can reduce your administrative burdens, and minimize errors and delays that often occur with separate vendors managing your retirement planning and payroll activities.
You can get ease of payroll, and save money when you choose PASI’s state-of-the-art payroll technology. It’s a package of complete, accurate, and affordable payroll services that also allows you to realize full integration and custom reports. Plus, you eliminate the need for compiling year-end census data!
Call us or visit our website for more information about our Payroll Services.
Congratulations to Marie Harabin, Plan Consultant, on her recent retirement. We’ll miss her years experience in the industry, and wish her well!
Welcome to our newest Plan Consultant, Katie Bourret, who joins us from USI Consulting. She comes to us with expertise in pension administration, as well as design, implementation, consulting and evaluation of qualified plans. We’re happy to have her on board and know she will do an excellent job helping her clients with their pension administration needs. Katie can be reached via email at email@example.com.