2022 Social Security Wage Base Increase, and Projected Increases in IRS Limits
(Posted on October 13, 2021 by )


SSALogoThe Social Security Administration today announced that the wage base for 2022 will increase to $147,000 from $142,800. In addition, the Department of Labor issued the CPI-U for September, which enables the calculation of several of the 2022 limits the IRS will shortly be announcing. (Thanks to Tom Poje for his calculation spreadsheet!) The limits for 1996 through 2022 (including the actual Social Security limit and the projected IRS limits) are shown at this link.
 
 
 
 
 

2021 IRS Benefits & Contributions Limits Announced
(Posted on October 26, 2020 by )


irsOn October 26, 2020, the IRS issued IRS Notice 2020-79, announcing the changes in pensions and benefits limits for 2021. The maximum limit on annual additions (primarily to defined contribution plans) rose from $57,000 to $58,000 and the annual limit on compensation taken into account rose from $285,000 to $290,000. Most other limits stayed the same.

A chart showing details, and limits from 1996 to 2021, can be found at this link.

 

 
 

Who is a spouse? Different federal agencies take differing approaches after Windsor
(Posted on August 13, 2013 by )


gay_marriageSince the publication of this article, Treasury and the IRS have announced that any legal same-sex marriage will be recognized for federal tax purposes, regardless of whether the couple’s home state recognizes the marriage. See this post. The Department of Labor has also issued final regulations under the Family & Medical Leave Act which recognize a marriage, regardless of the couple’s domicile, if a) it occurred within the United States, and it was valid in the state in which it took place, and b) it occurred outside of the United States, if it was valid in the jurisdiction in which it took place and it could have been entered into in at least one state.

Federal law requires that employer plans determine marital status in a variety of contexts, ranging from requirements that ERISA-covered retirement plans provide spousal death benefits (e.g., a qualified joint and survivor annuity, qualified preretirement survivor annuity, or payment of the participant’s account balance to the spouse) to COBRA (health care continuation) rights in the event of a divorce or separation. In the wake of the Supreme Court’s decision in United States v. Windsor, it is clear that a same-sex married couple must be treated the same as an opposite-sex married couple for these purposes. But when will a same-sex couple be treated as married? Weeks after the Windsor decision, the few federal agencies that have issued guidance have taken wildly disparate approaches.

Read more.