- IRS Announces Cost of Living Adjustment (COLA) Limits for 2015 Applicable to Retirement Plans
- November 14, 2014 | Authors: Sharon Kowal Freilich; George J. Kasper; Nancy D. Lapera; Herbert H. Moorin
- Law Firms: Pullman & Comley, LLC - Hartford Office ; Pullman & Comley, LLC - Bridgeport Office
The Internal Revenue Service has announced the cost of living adjustments (COLA) applicable to dollar limitations for retirement plans for 2015. Several of the limits that currently apply to the 2014 plan year will change for the 2015 plan year.
Employers should make sure that the individuals in charge of their payroll systems are aware of these limits. Also, employee communications and forms should be reviewed and updated as necessary to reflect these changes.
Maximum annual compensation that may be taken into acount for determinig benefits or contributions
Maximum elective deferral contribution limit for employees who participate in 401(k), 403(b) and most 457 plans
Maximum 401 (k) and 403 (b) and governmental 457 (b) catch-up contribution limit for participants age 50 or older
Defined contribution maximum annual addition
Defined benefit maximum annual benefit
Key employee top-heavy plan
Highly compensated employee compensation threshold
Social Security taxable wage base (FICA)