November,
1997Vol II, No.2 |
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Revolutionary New Product provides investment advice to 401(k) plan participants.
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November,
1997 Vol II, No.2 |
|
The Internal Revenue Service has announced the following 1998 dollar limits for qualified plans and other tax-favored retirement plans. The lull in the indexing of most of the limits is due to low inflation and the new laws enacted to slow the indexing.
| 1997 | 1998 | |
| Maximum annual payout from a defined plan at the social security normal retirement age | $125,000 | $130,000 |
| Maximum annual contribution to an individual's defined contribution account | $30,000 | $30,000 |
| Maximum elective Section 401(k) and 403(b) deferrals | $9500 | $10,000 |
| Maximum amount of annual compensation that can be taken into account for determining benefits or contributions under a qualified plan | $160,000 | $160,000 |
| Test to identify highly compensated employees | $80,000 | $80,000 |
The Social Security Administration has announced the 1998 inflation-adjusted dollar tests and limits for Social Security benefits:
| Wage Base: | 1997 | 1998 |
| for Social Security Tax | $65,400 | $68,400 |
| for medicare | No Limit | No Limit |
| Maximum benefit at age 65 (for an individual attaining age 65 who has received no wages beyond age 62) | $1,311.40 per month |
$1,387.00 per month |
| Earnings Test (amount that can be earned before benefits are cut) | ||
| Age 65-69 | $13,500/yr. | $14,500/yr. |
| Under Age 65 | $8,640/yr. | $9,120/yr. |
This newsletter is provided for informational purposes only. It is not offered as or intended to constitute legal advice. Under the Rules of the Supreme Judicial Court of Massachusetts, this material may be considered advertising.
