The IRS recently announced cost-of-living adjustments for 2015. The following list describes some of the key limits that will apply to employer qualified retirement plans in 2015.
- The annual limit on elective deferrals for employees who participate in 401(k) and 403(b) plans will increase from $17,500 to $18,000.
- The limit for annual additions to defined contribution plans will increase from $52,000 to $53,000.
- The catch-up contribution limit for employees aged 50 and over who participate in 401(k) and 403(b) plans will increase from $5,500 to $6,000.
- The annual benefit limit under a defined benefit plan remains unchanged at $210,000.
- The dollar limit on compensation for defining a ?Ç£key employee?Ç¥ in a top heavy plan remains unchanged at $170,000.
- The dollar limit on compensation for defining a ?Ç£highly compensated employee?Ç¥ will increase from $115,000 to $120,000.
- The annual limit on compensation taken into account when calculating a participant?ÇÖs benefit accruals will increase from $260,000 to $265,000.
The full list of changes can be found in IRS Information Release 2014-99 here.