Paseornek & Stimola, CPA's, PA

Retirement
   Plan Limit
      Changes

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PASEORNEK & STIMOLA
CERTIFIED PUBLIC ACCOUNTANTS
A PROFESSIONAL CORPORATION

Retirement Plan Limit Changes for 2001
The IRS has announced various 2001 cost of living adjustments for qualified plans . While many of the limits increase over 2000, a few - particularly the exclusion for 401(k) elective deferrals currently at $10,500 - remain unchanged.

Defined Benefit Plans
The limitation on the annual benefit for defined benefit plans increased to $140,000 from $135,000 last year.

Defined Contribution Plans
The limitation on the annual contribution to a defined contribution plan increases from $30,000 to $35,000.

SIMPLE Salary Deferral Plans
The maximum compensation deferral to a SIMPLE plan indreased from $6,000 to $6,500.

Compensation Limit
The limitation on the annual compensation remains at $170,000.

Pending Legislation
The above changes may be increased by pending and proposed legislation. Congress is considering an increase to the annual limit of defined contributionplans to $40,000 and on defined contribution plans to $160,000. Also being considered is an increase in the compensation limit to $200,000 and the 401(k) limit to $11,000.

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