2009 LIMITS
The Federal Government has announced
annual cost-of-living adjustments of dollar limits affecting
retirement and certain other plans.
The 2008 and 2009 limits are as follows:
IMPORTANT
DEADLINES
Nonqualified
Deferred Compensation - Section 409A:
Beginning January 1, 2009, Internal
Revenue Code ("Code") Section 409A final regulations take
effect. All nonqualified
deferred compensation plans and arrangements must be amended to
comply with Section 409A.
Employers must review all deferred compensation plans and
arrangements to confirm full compliance with the regulations as to
form and operation with Section 409A before year end.
Section 403(b)
Compliance:
Tax exempt employers and public
schools must make sure that their Section 403(b) plans are in writing
and comply with Code Section 403(b) regulations before January 1,
2009. Even if, previously, the
arrangement was not thought of as a plan, and merely facilitated
employee pre-tax deferrals, it must now be memorialized in a plan
document.
Section 415
Limits:
The effective date for final Code
Section 415 regulations is generally the first day of the first
limitation year beginning on or after July 1, 2007. All qualified plans must comply
with final Section 415 regulations as follows:
·
Non-Governmental
Plans: plans must be amended by the later of the time for filing
(with extensions) the sponsor's tax return for the tax year that
includes the effective date of the Section 415 regulations, or the
last day of the limitation year they become effective. For a calendar year plan this means
the deadline, including
extensions, for the sponsor's 2008 tax return.
·
Governmental
Plans: plans must
be amended by the later of the limitation year that begins more than
90 days after the close of the first regular legislative session
beginning on or after July 1, 2007 of the legislative body with
authority to amend the plan, or the last day of the next legislative
session held following the effective date of the regulations.
