The Internal Revenue Service recently announced cost-of-living adjustments (COLA) to the applicable dollar limits on various employer-sponsored retirement and welfare plans for 2013.  Although many dollar limits currently in effect for 2012 will change, some limits will remain unchanged for 2013.  McDermott Will & Emery has prepared a chart of these 2013 COLA changes.

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Recently the Internal Revenue Service (IRS) announced the cost-of-living adjustments to the applicable dollar limits on various employer-sponsored retirement and welfare plans for 2013.  Although many dollar limits currently in effect for 2012 will change, some limits will remain unchanged for 2013.  The table below compares the applicable dollar limits for 2012 and 2013 for certain employee benefit programs.*

Click here to view table.

Plan sponsors should update payroll and plan administration systems for the new 2013 cost-of-living adjustments and should incorporate the new limits in relevant participant communications, including open enrollment materials and summary plan descriptions.  Also, because 2013 marks the first year the IRS has imposed a limit on health flexible spending accounts, plan sponsors may need to amend plan documents to include the new limit on contributions.