IRS Releases 2015 Retirement Plan Limits



HR Alert
October 2014

One of the most common compliance issues for employers and plan sponsors is failure to adhere to annual retirement plan limits. In order to avoid costly penalties and administratively burdensome correction procedures, employers must remain up-to-date with retirement plan limits. Today, October 23, 2014, the IRS announced cost-of-living adjustments affecting 2015 dollar limitations for retirement plans and other retirement-related items. Some of the limits, including catch-up contributions (unchanged since 2009) and the highly compensated employee threshold (unchanged since 2011), will increase for 2015. Below is a chart listing retirement plan (401(k) and non-401(k) plan) limits for 2012-2015 plan years. Please note that the chart below does not include all applicable retirement plan limits, just some of the common ones.
401k Plan Limits
  2015 2014 2013 2012
Elective Deferrals $18,000 $17,500 $17,500 $17,000
Catch-Up Contributions $6,000 $5,500 $5,500 $5,500
Annual Defined Contribution Limit $53,000 $52,000 $51,000 $50,000
Annual Compensation Limit $265,000 $260,000 $255,000 $250,000
Highly Compensated Employee $120,000 $115,000 $115,000 $115,000
Non-401k Related Limits
Defined Benefit Plans $210,000 $210,000 $205,000 $200,000
403(b)/457 Elective Deferrals $18,000 $17,500 $17,500 $17,000
IRAs for individuals age 49 and below $5,500 $5,500 $5,500 $5,000
IRAs for individuals age 50 and above $6,500 $6,500 $6,500 $6,000
SIMPLE Employee Deferrals $12,500 $12,000 $12,000 $11,500
SEP Annual Compensation Limit $265,000 $260,000 $255,000 $250,000
Social Security Wage Base $118,500 $117,000 $113,700 $110,100

Hamby Benefits Law, LLC recommends that you consult with ERISA legal counsel to assist you with any questions you may have regarding applicable limits for your retirement plans.

This HR Alert was written by:
Anne Tyler Hamby
ERISA Attorney
3525 Piedmont Rd NE
7 Piedmont Center, Suite 300
Atlanta, GA 30305
(470) 223-3095 (office) Please note new office number
(404) 861-7441 (cell)
Specializing in retirement plans, health and welfare benefits, and executive compensation law

This HR Alert is intended to provide a summary of significant developments to clients and friends. It is intended to be informational and does not constitute legal advice regarding any specific situation. This material may also be considered attorney advertising under rules of certain jurisdictions.

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