IRS: No COLA Increases for 2010
On October 15, 2009, the Internal Revenue Service announced that there will be no cost-of-living adjustments to U.S. pension limitations for the calendar year 2010. This may come as a surprise to administrators or employees who have become accustomed to annual increases in the qualified plan limitations, as has been the case for most of the prior ten years. We are pleased that, given the current economic climate, the limitations were not reduced, as some had worried.
Among other things, these limitations restrict the amount of compensation that can be contributed to a defined contribution plan, or the amount that can be considered when calculating defined benefit accruals in a qualified retirement plan.
