The IRC limit on maximum annual benefit is indexed for inflation in $7000 increments each year beginning after 2006.(Defined Benefit Plans)

Question

Quizplus · Accepted Answer

The IRC limit on maximum annual benefit for defined benefit plans is indeed indexed for inflation, but it does not increase in $7000 increments each year. The increments vary based on inflation and are determined by the IRS.

The IRC Limit on Maximum Annual Benefit Is Indexed for Inflation