The Internal Revenue Service has just announced the cost-of-living adjustments and other dollar limitations for retirement plans that take effect January 1, 2015.
Maximum Defined Contribution Plan Annual Addition
$53,000 – increase of $1,000 from 2014.
Effective for limitation years ending in 2015.
Salary Deferral Limit
$18,000 – increase of $500 from 2014.
Catch-up Limit for 401(k), 403(b), and 457 Plans
$6,000 – increase of $500 from 2014.
HCE Compensation
$120,000 – increase of $5,000 from 2014.
Applies for determining HCE’s in 2016, based on compensation in 2015.
Maximum Compensation for Retirement Plan Purposes
$265,000 – increase of $5,000 from 2014.
Applies to plan years beginning in 2015.
Compensation for Determining if Officers can be Key Employees
$170,000 – remains unchanged from 2014.
Taxable Wage Base
$118,500 – increase of $1,500 from 2014.