Oct 23, 2014
IRS Announces 2015 Limits
The IRS announced today cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2015. Highlights include:
- The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), and most 457 plans is increased to $18,000 from $17,500.
- The catch-up contribution limit for employees aged 50 and over who participate in 40(k), 403(b), and most 457 plans is increased to $6,000 from $5,500.
- The limitation for defined contribution plans is increased to $53,000 from $52,000.
- The limitation on the exclusion for elective deferrals is increased from to $18,000 from $17,500.
- The limitation used in the definition of highly compensated employee is increased to $120,000 from $115,000.
- The annual compensation limit is increased to $265,000 from $260,000.
The dollar limitation concerning the definition of key employee in a top-heavy plan remains unchanged at $170,000.
Please call us at 610-925-5554 with any questions you may have regarding the new 2015 limits or any retirement plan questions you may have.