On October 23, 2014, the IRS announced the 2015 cost-of-living increases applicable to the dollar limits for retirement plans. The annual limit for elective deferrals to 401(k) and 403(b) plans will increase from $17,500 to $18,000 and the annual limit for catch-up contributions for individuals age 50 or over will increase from $5,500 to $6,000. The Social Security Administration also recently announced that the Social Security wage base will increase from $117,000 to $118,500 for 2015.
Listed below are the principal limits applicable for 2015 as compared to those for 2014.
Listed below are the principal limits applicable for 2015 as compared to those for 2014.
|
Limit
|
2015
|
2014
|
|
Compensation Limit
|
$265,000
|
$260,000
|
|
Elective Deferrals (401(k), 403(b), 457(b))
|
$18,000
|
$17,500
|
|
Catch-up Contributions
|
$6,000
|
$5,500
|
|
Defined Contribution Plan 415 Limit
|
$53,000
|
$52,000
|
|
Defined Benefit Plan 415 Limit
|
$210,000
|
$210,000
|
|
Highly Compensated Employee
|
$120,000
|
$115,000
|
|
Social Security Wage Base
|
$118,500
|
$117,000
|
|
SIMPLE Plan Limit
|
$12,500
|
$12,000
|
|
SIMPLE Catch-up Contributions
|
$3,000
|
$2,500
|
