Fall Is Here – The Limits Are Out
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 |