Employee Benefits Blog
Posts tagged IR-2014-99
October 24, 2014
On October 23, 2014, the Internal Revenue Service issued IR-2014-99, a news release announcing the 2015 inflation adjustments affecting pension plans and other retirement-related items. The following are among the more significant changes (and non-changes) for 2015:
- The elective deferral limit for employees who participate in 401(k), 403(b), and most 457 plans 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), and certain 457 plans is increased from $5,500 to $6,000. (This limit has been at the $5,500 level since 2009.)
- The limitation on the annual benefit under a defined benefit plan remains unchanged at $210,000.
- The limitation on annual contributions to defined contribution plans is increased from $52,000 to $53,000.
- The limit on the amount of compensation that can be taken into account for purposes of numerous tests is increased from $260,000 to $265,000.
- The dollar limitation concerning the definition of key employee in a top-heavy plan remains unchanged at $170,000.
- The limitation used in the definition of highly compensated employee is increased from $115,000 to $120,000.
- The limitation on elective SIMPLE retirement account contributions is increased from $12,000 to $12,500.
- The catch-up contribution limit for employees aged 50 and over who participate in a SIMPLE plan is increased from $2,500 to $3,000.
- The deductible amount for an individual making contributions to an individual retirement account remains unchanged at $5,500. (This is before taking into account the additional contribution of $1,000 available to taxpayers who are at least 50 years of age; this amount is unchanged.)