On October 23, 2014, the IRS 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. However, other limitations will remain unchanged because the increase in the index did not meet the statutory thresholds that trigger their adjustment.
|
Defined Contribution Plan Limits |
2015 |
2014 |
|
Maximum employee elective deferral |
$18,000 |
$17,500 |
|
Employee catch-up contribution (ages 50 and older) |
$6,000 |
$5,500 |
|
Defined contribution maximum limit, all sources |
$53,000 |
$52,000 |
|
Defined contribution maximum limit (ages 50 and older) |
$59,000 |
$57,500 |
|
Employee compensation limit for calculating contributions |
$265,000 |
$260,000 |
|
Compensation of “key employees” in a top-heavy plan (unchanged) |
$170,000 |
$170,000 |
|
Compensation of “highly compensated employees” in a top-heavy plan (HCE threshold) |
$120,000 |
$115,000 |
