2015 Retirement Plan Limitations
Business Law Articles
By: Bernard G. Peter, Esq.
Kubasiak, Fylstra, Thorpe & Rotunno, P.C.
Chicago, Illinois
The Internal Revenue Service (IRS) announced the 2015 retirement plan limits on October 23, 2013. The maximum amount of elective deferrals for 401(k) plans increased from $17,500 to $18,000. The catch-up amount for those who are age 50 and above in 2015 increased from $5,500 to $6,000. The highly compensated threshold increased from $115,000 to $120,000. The compensation limit which is the amount of compensation on which employees can earn a benefit in a qualified retirement plan such as a 401(k) plan increased from $260,000 in 2014 to $265,000 in 2015.
The complete list of the IRS 2015 dollar limitations for benefits and compensation is set forth on the following page:.
IRS 2015 Dollar Limitations
On Retirement Plan Benefits and Compensation
| 2015 | 2014 | 2013 | |
| IRAs | |||
| IRA Contribution Limit |
$5,500 |
$5,500 |
$5,000 |
| IRA Catch-up Contributions |
1,000 |
1,000 |
1,000 |
| IRA AGI Deduction Phase-Out Starting at | |||
| Joint Return |
98,000 |
96,000 |
95,000 |
| Single or Head of Household |
61,000 |
60,000 |
59,000 |
| SEP | |||
| SEP Minimum Compensation |
600 |
550 |
550 |
| SEP Maximum Contribution |
53,000 |
52,000 |
51,000 |
| SEP Maximum Compensation |
265,000 |
260,000 |
255,000 |
| Simple Plans | |||
| SIMPLE Maximum Contributions |
12,500 |
12,000 |
12,000 |
| Catch-up Contributions |
3,000 |
2,500 |
5,500 |
| 401(k), 403(b), Profit-Sharing Plans, Defined Benefit, etc. | |||
| Annual Compensation |
265,000 |
260,000 |
255,000 |
| Elective Deferrals |
18,000 |
17,500 |
17,500 |
| Catch-up Contributions |
6,000 |
5,500 |
5,500 |
| Defined Contributions Limits |
53,000 |
52,000 |
51,000 |
| ESOP Limits |
1,070,000 |
1,050,000 |
1,035,000 |
|
210,000 |
210,000 |
205,000 |
|
| Other | |||
| HCE Threshold |
120,000 |
115,000 |
115,000 |
| Defined Benefit Limits |
210,000 |
210,000 |
205,000 |
| Key Employee |
170,000 |
170,000 |
165,000 |
| 457 Elective Deferrals |
18,000 |
17,500 |
17,500 |
| Control Employee (board member or officer) |
105,000 |
105,000 |
100,000 |
| Control Employee (compensation-based) |
215,000 |
210,000 |
205,000 |
| Taxable Wage Base |
118,500 |
117,000 |
113,700 |
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