On October 23, 2014 the Internal Revenue Service (IRS) announced the cost-of-living adjustments impacting tax-qualified pension plans for 2015. The increase in the cost-of-living index met the statutory thresholds that trigger adjustments. As a result, increases were made to most of the general pension limitations, including the individual limits on deferrals and catch-up contributions, as well as the limit on annual compensation. The following table highlights some of the key limits that affect tax-qualified pension plans.
|
Code Section
|
2015
|
2014
|
|
401(a)(17)/404(l) Annual Compensation
|
$265,000
|
$260,000
|
|
402(g)(1) Elective Deferrals
|
18,000
|
17,500
|
|
414(v)(2)(B)(i) Catch-up Contribution
|
6,000
|
5,500
|
|
415(b)(1)(A) Defined Benefit Plan Limits
|
210,000
|
210,000
|
|
415(c)(1)(A) Defined Contribution Plan Limits
|
53,000
|
52,000
|
|
457(e)(15) Deferral Limit
|
18,000
|
17,500
|
|
414(q)(1)(B) Highly Compensated Employee Threshold
|
120,000
|
115,000
|
|
409(o)(1)(C) ESOP Limits
|
1,070,000 210,000
|
1,050,000 210,000
|
|
416(i)(1)(A)(i) Key Employee
|
170,000
|
170,000
|
|
408(p)(2)(E) SIMPLE Maximum Contributions
|
12,500
|
12,000
|
|
414(v)(2)(B)(ii) SIMPLE Catch-up Contribution
|
3,000
|
2,500
|
|
408(k)(2)(C) SEP Minimum Compensation
|
600
|
550
|
|
408(k)(3)(C) SEP Maximum Compensation
|
265,000
|
260,000
|
|
1.61-21(f)(5)(i) Control Employee
|
105,000
|
105,000
|
|
1.61-21(f)(5)(iii) Control Employee
|
215,000
|
210,000
|
|
Social Security Tax Wage Base
|
118,500
|
117,000
|
The complete IRS table of cost-of-living adjustments for retirement items can be found on the IRS’s website.
