The cost-of-living adjustments affecting the dollar limits for qualified retirement plans for 2015 has been issued by the Internal Revenue Service. Among the changes to the limits is the increase to the elective deferral amount from $17,500 to $18,000 for employees who participate in 401(k) plans or 403(b) plans. The catch-up contribution for employees who are age 50 or older will increase from $5,500 to $6,000. The schedule below shows the new dollar amounts for the limits commonly used in the administration of retirement plans.

Administrators of qualified retirement plans should review their plan documents and employee communications and update such materials as necessary to reflect the new limits for 2015.
 

Category

2014

2015

Elective Deferrals for 401(k) and 403(b) Plans
(Internal Revenue Code §402(g))

$17,500

$18,000

Catch-Up Contributions for Age 50 and older
(Internal Revenue Code §414(v))

$5,500

$6,000

Annual Additions for Defined Contribution Plans
(Internal Revenue Code §415(c))

$52,000

$53,000

Annual Benefits for Defined Benefit Plans
(Internal Revenue Code §415(b))

$210,000

$210,000

Annual Compensation Limit
(Internal Revenue Code §401(a)(17))

$260,000

$265,000

Highly Compensated Employee
(Internal Revenue Code §414(q))

$115,000

$120,000

Social Security Wage Base
OASDI

$117,000

$118,500

Individual Retirement Account Contributions
(Internal Revenue Code §219)

$5,500

$5,500

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.