IRS Announces 2015 Pension Plan Limitations

In Employee Benefits, General by Coolidge Wall

On October 23, 2014, the IRS announced cost-of-living adjustments for 2015 retirement plan contributions. For 2015, the amounts that individuals will be able to contribute to retirement plans will increase $500 to $18,000. The catch-up contribution limit for employees age 50 and over will also increase $500 to $6,000.

This chart summarizes the limitations for 2015:

Contribution Limits 2015 2014
Elective Deferral Limit – 401(k), 403(b) and 457(b) Plans $18,000 $17,500
Catch-Up Contribution Limit $6,000 $5,500
Elective Deferral Limit – SIMPLE Retirement Plan $12,500 $12,000
Catch-Up Contribution Limit – SIMPLE Retirement Plan $3,000 $2,500
Contribution Limit – IRA $5,500 $5,500
Catch-Up Contribution Limit – IRA $1,000 $1,000
Benefits and Compensation
Defined Contribution Plan Annual Addition Limit $53,000 $52,000
Defined Benefit Plan Annual Benefit Limit $210,000 $210,000
Annual Compensation Limit $265,000 $260,000
Highly Compensated Employee Limit $120,000 $115,000
Key Employee Compensation Limit $170,000 $170,000

The Social Security Administration earlier announced that the Social Security Wage Base for 2015 will increase to $118,500 from $117,000.

If you have questions about the new pension plan limitations, please contact Edie Crump (937-449-5530).

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