Fall Is Here – The Limits Are Out

Lyndsey Barnett

Each fall, many of the same things happen.  The leaves fall.  I drink too many pumpkin spice lattes.  The Bengals start to disappoint.  And, the IRS announces the retirement plan limits for the following calendar year.  Right on cue, as I was sipping a pumpkin spice latte yesterday, the IRS announced the 2015 limits.  A majority of these limits, along with the social security taxable wage base, were increased. Below is a chart showing the applicable dollar limitations for 2015 and the corresponding 2014 amounts.

2014

2015

ELECTIVE DEFERRAL ANNUAL LIMITS

401(k), 403(b) and SEPs

457 Plans

SIMPLE IRAs and 401(k)s

 

$17,500

$17,500

$12,000

 

$18,000

$18,000

$12,500

CATCH-UP CONTRIBUTIONS

401(k), 403(b) and SEPs

SIMPLE IRAs and 401(k)s

 

$5,500

$2,500

 

$6,000

$3,000

MAXIMUM ANNUAL PLAN COMPENSATION LIMIT

$260,000

$265,000

415 ANNUAL ADDITIONS

Defined Benefit Plan Limit

Defined Contribution Plan Limit

 

$210,000

$52,000

 

$210,000

$53,000

HIGHLY COMPENSATED EMPLOYEE

$115,000

$120,000

KEY EMPLOYEE (TOP HEAVY)

Officers

1% Owner

 

$170,000

$150,000

 

$170,000

$150,000

SOCIAL SECURITY TAXABLE WAGE BASE

$117,000

$118,500