Full Version: 2007 COLA Amounts?
Has anyone seen any unofficial estimates on the COLA amounts for 2007 applicable to qualified plans, 403(b)s and 457(b)s? I have seen unofficial estimates for the tax brackets, HSA amounts, and transportation fringes as well as the new IRA COLAs.
FYI, earlier speculation on 2007 indexing.
http://benefitslink.com/boards/index.php?showtopic=32583
http://benefitslink.com/boards/index.php?showtopic=32583
this is the spreadsheet I have been using to 'estimate' what it is coming. It requires the user to enter the monthly CPI-U fields. Obviously we dont know Sept yet.
I am not 100% sure on the numbers for next year as EGTRRA changed some stuff, but I believe you have to compare the 2006 values to the 2005 values (If I understand things correctly) I won't know for sure until they release the official numbers in a few weeks.
I am not 100% sure on the numbers for next year as EGTRRA changed some stuff, but I believe you have to compare the 2006 values to the 2005 values (If I understand things correctly) I won't know for sure until they release the official numbers in a few weeks.
I'm resurrecting this thread from last year as I have a client anxious to know what the limits for 2008 will be... 
Tom - when are they actually released each year? It looks from your thread last year as though they would be released "a few weeks" from Sept 28th (date of the thread), so I'm guessing in October sometime???
Tom - when are they actually released each year? It looks from your thread last year as though they would be released "a few weeks" from Sept 28th (date of the thread), so I'm guessing in October sometime???
Upcoming release dates (for CPI-U) per www.bls.gov site:
August 2007 Sept. 19, 2007 8:30 am
September 2007 Oct. 17, 2007 8:30 am
(looks like 3rd Wednesday of following month)
Table of data can be found here: ftp://ftp.bls.gov/pub/special.requests/cpi/cpiai.txt
To save you looking, July's number was 208.299 (which you could plug in for July Aug and Sept in CPI tab of the spread sheet above to get a rough idea).
NOTE ABOUT SPREADSHEET ABOVE: looks like formula change didn't get copied from 2007 to 2008 & beyond; need to copy C26 and D26 to rows below for 2008 to work right. Oh, and A26 for catch up.
August 2007 Sept. 19, 2007 8:30 am
September 2007 Oct. 17, 2007 8:30 am
(looks like 3rd Wednesday of following month)
Table of data can be found here: ftp://ftp.bls.gov/pub/special.requests/cpi/cpiai.txt
To save you looking, July's number was 208.299 (which you could plug in for July Aug and Sept in CPI tab of the spread sheet above to get a rough idea).
NOTE ABOUT SPREADSHEET ABOVE: looks like formula change didn't get copied from 2007 to 2008 & beyond; need to copy C26 and D26 to rows below for 2008 to work right. Oh, and A26 for catch up.
here is the link to the data for calculating the taxable wage base.
although it is not quite official yet, it looks like it is pretty much decided - no matter which of the tables you use - they all have the same projected value for 2008.
the wage base is calculated as follows:
1994 base * 1992 avg wage index / wage index for year (Y-2) [rounded to nearest multiple of $300]
the 1994 base is 60,600
so now you know!
e.g. for 2007 you divided by the 2005 avg wage index
http://www.ssa.gov/OACT/TR/TR07/V_programatic.html#wp187848
although it is not quite official yet, it looks like it is pretty much decided - no matter which of the tables you use - they all have the same projected value for 2008.
the wage base is calculated as follows:
1994 base * 1992 avg wage index / wage index for year (Y-2) [rounded to nearest multiple of $300]
the 1994 base is 60,600
so now you know!
e.g. for 2007 you divided by the 2005 avg wage index
http://www.ssa.gov/OACT/TR/TR07/V_programatic.html#wp187848
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