• The IRS Announces New Retirement Plan Limitations for 2015
  • October 31, 2014 | Authors: Antoinette M. Pilzner; Dale R. Vlasek; John M. Wirtshafter
  • Law Firms: McDonald Hopkins LLC - Bloomfield Hills Office ; McDonald Hopkins LLC - Cleveland Office
  • On October 23, 2014, the IRS announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for the Tax Year 2015. Many of the limitations have changed from the limits that are in place for 2014.

    Below are the 2015 plan limitations:

    2015 Retirement Plan Limits

     

    2015

    2014

     401(k),403(b) and 457(b) Deferral Limits     

    $18,000

    $17,500

     401(k) and 403(b) Catch-up Deferral Limits 

    $6,000

    $5,500

     Annual Limitation on Compensation            

    $265,000

     $260,000

     Defined Contribution Limitation                     

    $53,000

    $52,000

     Defined Benefit Limitation                               

       $210,000

    $210,000

     Highly Compensated Employee Compensation Threshold    

    $120,000

    $115,000

     Key Employee Compensation - Officer Threshold

    $170,000

    $170,000

     SIMPLE Deduction

    $12,500

    $12,000

     SIMPLE Catch-Up Contribution

    $3,000

    $2,500

     IRA Contribution Limit

    $5,500

    $5,500

     IRA Catch-Up Contribution Limit

    $1,000

    $1,000

     Social Security Wage Base

    $118,500

    $117,000