CompLimit
returns
the 401(a)(17) & 404(l) Compensation
Cap annual
compensation limit amount for a given year. For a qualified plan, the
compensation taken into account for any employee in determining plan
allocations or benefit accruals for any plan year is limited to this amount.
CompLimit for year 𝑥 is based on the
following formula:
|
Where 𝐶𝑃𝐼𝑦𝑒𝑎𝑟
is the “3rd quarter CPI” (sum of
the CPI-U for the months of July, August, and September) in the given year.
(September CPI is usual published around October 13.) If the amount so determined is not a multiple of $5,000,
it is rounded to the nearest multiple of $5,000. Not less than the amount for
the prior year. Note: ·
Prior to 1989 there was no limit. ·
From 1989 through 1993, the limit was $200,000,
indexed for the increase
in 4th quarter CPI (no rounding). ·
From 1994 through 2001, the limit was $150,000, indexed for the increase in 3th quarter CPI ($10,000 rounding). |
Syntax
CompLimit (DeterminationYear, [LawYear],
[Inflation])
|
Parameter Name |
Description |
|
DeterminationYear |
A
4 digit number, or an optional text value as shown in the table below. If the
DeterminationYear is after the LawYear, this is a projected
calculation based on the Inflation assumption. Click to view various options for the DeterminationYear parameter. |
|
LawYear |
A
4 digit number. |
|
Inflation |
The
assumed rate of inflation: the IRS
Cost-of-Living Adjustment for future years, as measured by the
year-over-year increase in CPI-U. This
is used only for a projected calculation. Optional:
default = 0% |