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Employee Benefits Blog - E-Blog

Employee Benefits Blog

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The Employee Benefits & Executive Compensation attorneys at Chamberlain Hrdlicka represent public companies, large and closely-held private companies, tax-exempt organizations, and the fiduciaries who oversee those entities' employee benefit plans.  We understand incentives in the workplace, and we stand ready with an integrated approach to help you deal with them.

From qualified retirement plans, to executive compensation, to fiduciary advice, to health and welfare programs, to mergers and acquisitions, to ERISA litigation, our broad experience helps companies answer questions in these areas of the law.  A background in tax, securities, and fiduciary matters is our foundation.  A common theme runs through our work in these areas: we specialize in representing employers in protecting their interests and maximizing tax advantages. We understand the work that goes into creating and maintaining incentives in the workplace, and we have the technical skills to help keep a company's employee benefit plans operating at peak efficiency.

At Chamberlain Hrdlicka, we stand with company Boards of Directors, Compensation Committees, and the HR teams that serve those directors and committees, as they seek to provide a stable, productive environment for company executives and workers.

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IRS Announces Cost of Living Adjustments for Dollar Limitations under Pension Plans and Other Retirement-Related Matters

The IRS announced the cost of living adjustments for dollar limitations under pension plans and other retirement-related matters. See Notice 2020-79, https://www.irs.gov/pub/irs-drop/n-20-79.pdf.

In IR-2020-244, https://content.govdelivery.com/accounts/USIRS/bulletins/2a7d379, also provides dollar limitation cost of living adjustments for Both IRAs and pension plans, as well.

In Revenue Procedure 2020-45 the IRS announced the inflation adjustments that will apply to various fringe benefits in 2021. https://www.irs.gov/pub/irs-drop/rp-20-45.pdf

Unsurprisingly, most of our dollar limits go unchanged as the cost of living adjustments are impacted by economic factors. Of note, the annual compensation limit under §§ 401(a)(17), 404(l), 408(k)(3)(C), and 408(k)(6)(D)(ii) is increased from $285,000 to $290,000.

  • Joshua A. Sutin
    Shareholder

    Joshua Sutin helps clients unravel complex legal and business issues related to employee benefit plans, tax-exempt organizations, and business tax planning. He counsels both businesses and not-for-profit organizations on the ...