October 24, 2014
The IRS has announced the 2015 cost-of-living adjustments for various retirement plan dollar limits. The 2015 limits are as follows:
|
Limit |
2013 |
2014 |
2015 |
| Section 402(g) limit for 401(k) pre-tax contributions |
$17,500 |
$17,500 |
$18,000 |
| Section 414(v) catch-up contribution limit |
$5,500 |
$5,500 |
$6,000 |
| Section 401(a)(17) limit on annual compensation recognizable for retirement plan purposes |
$255,000 |
$260,000 |
$265,000 |
| Annual pre-tax contribution rate for participants at the compensation limit to reach the Section 402(g) contribution limit |
6.86% |
6.73% |
6.79% |
| Section 415 limit on annual additions to a defined contribution plan |
$51,000 |
$52,000 |
$53,000 |
| Section 415 limit on annual benefits under a defined benefit plan |
$205,000 |
$210,000 |
$210,000 |
| Compensation threshold for defining “Highly Compensated Employees” |
$115,000 (in 2012) |
$115,000 (in 2013) |
$115,0001 (in 2014) |
| Compensation threshold for officers to be “Key Employees”2 |
$165,000 |
$170,000 |
$170,000 |
| Social Security (OASDI) Wage Base |
$113,700 |
$117,000 |
$118,500 |
1 An employee with compensation exceeding $120,000 in 2015 will be an HCE in 2016.
2 5% owners and 1% owners with compensation exceeding $150,000 are also key employees.