January 1999 Issue


By David Langer, David Langer Company, Inc.

Based upon the cost of living adjustment of 1.3% down from 2.1% last year, the changes in Social Security values and qualified pension plan limits are shown below for 1999 with a comparison to those for 1998. This is the lowest benefit increase since December 1986. Social Security Values   1999 1998  Change Taxa

Qualified Plan Limits


The values below have been rounded down, where applicable, as required by the Retirement Protection Act (DBP=defined benefit plan, DCP=defined contribution plan).


Maximum DBP benefit: $130,000, no change

Maximum DCP contribution: $30,000, no change

Maximum DBP and DCP compensation: $160,000, no change

Maximum IRC Sec. 401(k) salary deduction: $10,000, no change

Highly compensated employee (DBP & DCP): $80,000, no change

Excess benefit excise tax threshold: No longer applicable

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