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 |
$17,500 |
$18,000 |
|
Catch-Up Contributions for Age 50 and older |
$5,500 |
$6,000 |
|
Annual Additions for Defined Contribution Plans |
$52,000 |
$53,000 |
|
Annual Benefits for Defined Benefit Plans |
$210,000 |
$210,000 |
|
Annual Compensation Limit |
$260,000 |
$265,000 |
|
Highly Compensated Employee |
$115,000 |
$120,000 |
|
Social Security Wage Base |
$117,000 |
$118,500 |
|
Individual Retirement Account Contributions |
$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.