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    Edwards Wildman Client Advisory: IRS Announces 2015 Retirement Plan Limitations

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    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

    $18,000

    $17,500

    Catch-Up Contribution (plans other than SIMPLE plans)

    $6,000

    $5,500

    SIMPLE Plan Employee Deferrals

    $12,500

    $12,000

    SIMPLE Plan Catch-Up Contributions

    $3,000

    $2,500

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

    $53,000

    $52,000

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

    $210,000

    $210,000

    Compensation Limit under Section 401(a)(17)

    $265,000

    $260,000

    Highly Compensated Employee Definition under Section 414(q)

    $120,000

    $115,000

    Key Employees Officer Compensation for Top-Heavy Plans

    $170,000

    $170,000

    Maximum ESOP Account Balance Subject to 5-Year Distribution Period

    $1,070,000

    $1,050,000

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

    $210,000

    $210,000

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

    $395,000

    $385,000

    Social Security (FICA) Wage Base

    $118,500

    $117,000

    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

    $3,350

    $3,300

    Family Coverage

    $6,650

    $6,550

    HSA Catch-Up Contributions (age 55 or older)

    $1,000 

    $1,000

    High Deductible Health Plan – Minimum Annual Deductible

     

     

    Self-Only Coverage

    $1,300

    $1,250

    Family Coverage

    $2,600

    $2,500

    High Deductible Health Plan – Maximum Out of Pocket Limit

     

     

    Self-Only Coverage

    $6,450

    $6,350

    Family Coverage

    $12,900

    $12,700



    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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