Edwards Wildman Client Advisory: IRS Announces 2015 Retirement Plan Limitations


    The Internal Revenue Service announced the 2015 cost-of-living adjustments to the dollar limitations for qualified retirement plans and other benefits, and the Social Security Administration announced its own cost-of-living adjustments for 2015. The elective deferral contribution limit for 401(k), 403(b) and 457(b) plans, as well as the catch-up contribution limit, will increase for 2015. Other limits, such as the annual compensation limit under 401(a)(17), the limit used in the definition of highly compensated employee and the maximum annual contribution limit under Code Section 415, will also increase for 2015.

    Retirement Plan Limits and Social Security Wage Base

    2015 Limits

    2014 Limits

    401(k)/403(b)/457(b) Elective Deferrals



    Catch-Up Contribution (plans other than SIMPLE plans)



    SIMPLE Plan Employee Deferrals



    SIMPLE Plan Catch-Up Contributions



    Plan Maximum Annual Contribution – Defined Contribution Plans (Section 415(c))



    Maximum Annual Benefit – Defined Benefit Plans (Section 415(b))



    Compensation Limit under Section 401(a)(17)



    Highly Compensated Employee Definition under Section 414(q)



    Key Employees Officer Compensation for Top-Heavy Plans



    Maximum ESOP Account Balance Subject to 5-Year Distribution Period



    ESOP Dollar Amount Used to Determine the Lengthening of the 5-Year Distribution Period



    Special Annual Compensation Limit for Governmental Plans in effect on July 1, 1993



    Social Security (FICA) Wage Base



    Health Savings Account and High Deductible Health Plan Limits
    Earlier this year, the IRS announced the inflation-adjusted amounts for health savings account and high-deductible health plans for 2015, which reflect an increase from 2014.

    Health Savings Accounts/HDHP Limits

    2015 Limits

    2014 Limits

    Annual Contribution Limit – HSA Contribution



    Self-Only Coverage



    Family Coverage



    HSA Catch-Up Contributions (age 55 or older)



    High Deductible Health Plan – Minimum Annual Deductible



    Self-Only Coverage



    Family Coverage



    High Deductible Health Plan – Maximum Out of Pocket Limit



    Self-Only Coverage



    Family Coverage



    If you have any questions regarding these issues, please contact the Edwards Wildman Palmer LLP lawyer responsible for your affairs or any Employee Benefits and Executive Compensation attorney.

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