IRS has released the new cost-of-living adjustments for certain pension plans for Tax Year ’09.

As of Jan. 1, 2009, the limitation on the annual benefit for a defined benefit plan under Sec. 415(b)(1)(A) will increase by $10,000 to $195,000.

For participants who separated from service before that date, the limitation for defined benefit plans under Sec. 415(b)(1)(B) is determined by multiplying the participant’s compensation limitation (adjusted through 2008) by 1.0530.

For plans under Sec. 415(c)(1)(A) the limitation increases to $49,000.

To get all the details, check out IR-2008-118.

Tags: Inflation adjustments, Payroll, Pension plans, Tax compliance