On October 15, 2009, the Internal Revenue Service (IRS) announced the cost-of-living adjustments applicable to dollar limitations for pension plans and other items for tax year 2010. Section 415 of the Internal Revenue Code provides for dollar limitations on benefits and contributions under qualified retirement plans.
For 2010, the limitations will remain unchanged because the cost-of-living index for the quarter ended September 30, 2009, is less than the cost-of-living index for the quarter ended September 30, 2008. Following the procedures under the Social Security Act for adjusting benefits amounts, any decline in the applicable index cannot result in a reduced limitation.
KraftCPAs is a public accounting (CPA) firm headquartered in Nashville, Tennessee providing employee benefit plan audit and administration services.
