The Internal Revenue Service (IRS) announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2015.

The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan is increased from $17,500 to $18,000.

The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan is increased from $5,500 to $6,000.

Section 415 of the Internal Revenue Code provides for dollar limitations on benefits and contributions under qualified retirement plans. Section 415(d) requires that the Secretary of the Treasury annually adjust these limits for cost-of-living increases. Other limitations applicable to deferred compensation plans are also affected by these adjustments under Section 415. Under Section 415(d), the adjustments are to be made under adjustment procedures similar to those used to adjust benefit amounts under Section 215(i)(2)(A) of the Social Security Act.

The limitation on the annual benefit under a defined benefit plan remains unchanged at $210,000.

The limitation for defined contribution plans under Section 415(c)(1)(A) is increased in 2015 from $52,000 to $53,000.

After the downstairs play area was rebuilt after Hurricane Sandy, my wife went on a toy-buying spree to replace the board games we lost thanks to the five feet of water. My wife loves board games and the kids do too. Having discovered the Internet, I like them less so.

When it comes to being a retirement plan sponsor, sponsoring the plan isn't just about the employees saving for retirement. It's about playing what is essentially similar to a board game: "How to limit your liability as a retirement plan sponsor." The concept is kind of the same as the board games Life or Monopoly. How the plan sponsor plays the limit liability game will dictate whether they will suffer pecuniary harm or not.

It may not be like Monopoly and buying up properties, but this liability board game is about making the correct moves of hiring competent plan providers such as a third party administrator and financial advisor with a process to review their work and the fees they charge. It's not a difficult concept to understand because like a board game, life is a series of moves and the moves that a plan sponsor can take will go a long way in limiting their liability.