The IRS has announced cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2015. Many of the pension plan limitations will change for 2015 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment. Other limitations remain unchanged because the increase in the index did not meet the statutory thresholds that trigger their adjustment.
Below are the details on both the adjusted and unchanged limitations:
|401(k) elective deferral limit||$17,500||$18,000|
|403(b) tax-sheltered annuity limit (tax-exempt organizations||$17,500||$18,000|
|457 deferred compensation limit (tax-exempt organizations)||$17,500||$18,000|
|Catch-up contributions for those age 50 and over||$5,500||$6,000|
|SIMPLE 401(k) and SIMPLE IRA catch-up contribution limit for those age 50 and over||$2,500||$3,000|
|Section 415 individual limit for defined benefit plans||$210,000||$210,000|
|Section 415 individual limit for defined contribution plans||$52,000||$53,000|
|Annual compensation limit for qualified plans||$260,000||$265,000|
|Dollar limit for “highly compensated employee”||$115,000||$120,000|
|Dollar limit for “key employee”||$170,000||$170,000|
|Compensation limit for SEP eligibility||$550||$600|
|Social Security wage base||$117,000||$118,500|
|IRA contribution total individual limit pre-tax and/or ROTH||$5,500||$5,500|
|IRA catch-up limit for those age 50 and over||$1,000||$1,000|
|ROTH IRA maximum income limit – single||$129,000||$131,000|
|ROTH IRA maximum income limit – married||$191,000||$193,000|
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