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The 111th United States Congress

  
  
  

We recently discussed the 2008 State of the ESOP Address. New 111th Congress: Uncertainty for ESOPs - Prescription for Action—the Tried and True discusses how the first session of the 111th United States Congress begins today. It notes that while there are new members of key committees and legislation such as The ESOP Promotion and Improvement Act of 2007 (S. 1322) no longer exists, the best way to advocate a pro-ESOP position has not changed:

Never has the ESOP position, since the retirement of former ESOP godfather Senator Russell Long retired, been "won" in Washington, DC.

It will be won in the cities, and towns of America, only if ESOP companies, both leadership of the companies, and hopefully average pay employees, directly present the story of how the ESOP works positively in their communities in the cities and towns where they live—I mean directly to the member of Congress when he or she is home.

Never ever forget Senator Long's words of wisdom - the most important thing to a member of Congress is being elected; and the second most important thing is being re-elected.

But this does not change either—members of Congress are people just like you. They do not respond favorably to someone who acts as if he or she is "entitled" to tell the member of Congress what "works" for them. Since the days of Plato, there has been an age old argument - does a representative in a Republic only vote the way the majority of people he or she represents wants, or does the representative have a higher duty to do what he or she sincerely believes is best after review of data and information that citizens do not have, or have no time to review. [Interestingly, there is a buzz among internet fans that in the 21st Century all citizens will have access to the same information as elected representatives, and therefore the relationship of representative to the represented will change. In this camp, having read the blogs, and the mean spirited and often crude remarks made by "educated" internet users, I hope not.]

So, ESOP advocates, if you can't be civil around politicians, and respectful, leave the hands-on lobbying to others.

Finally, be armed with a plan. Have a specific request. Do not waste a member of Congress's time, just like you do not want some salesperson to waste your time.

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2012 IRS Pension Plan Limits

401(k) Deferral Limit - $17,000

Annual Additions Limit - $50,000

Maximum Compensation Limit - $250,000

Catch-Up Contribution Limit - $5,500

Highly Compensated Employee - $115,000

ESOP 5-Year Distribution Threshold - $1,015,000

ESOP Additional Year Threshold - $200,000

2012 Pension Plan Limits

1989 - 2012 Plan Limits