Pension Plan Limitations Announced for the 2015 Tax Year
The Internal Revenue Service announced adjustments to the cost-of-living for the 2015 tax year that will affect dollar limitations for pension plans and other retirement-related taxes. Pension plan limitations are changing because of an increase in the cost-of-living index, but other limitations will remain unaffected.
For a detailed list of some of the adjusted and unchanged pension plan limitations, please see the below table.
You can also visit the IRS website for more information: http://www.irs.gov/uac/Newsroom/IRS-Announces-2015-Pension-Plan-Limitations;-Taxpayers-May-Contribute-up-to-$18,000-to-their-401(k)-plans-in-2015
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Code Section |
2015 |
2014
|
|
Elective deferral (contribution) limit under Code section 402(g) |
$ 18,000 |
$ 17,500 |
|
Catch-up contribution limit under Code section 414(v)(2)(B)(i) |
$ 6,000 |
$ 5,500 |
|
Annual compensation limit under Code section 401(a)(17) |
$ 265,000 |
$ 260,000 |
|
Maximum defined benefit annuity limit under Code section 415(b)(1)(A) |
$ 210,000 |
$ 210,000 |
|
Maximum defined contribution annual additions limit under Code section 415(c)(1)(A) |
$ 53,000 |
$ 52,000 |
|
Highly compensated employee threshold under Code section 414(q)(1)(B) |
$ 120,000 |
$ 115,000 |
|
Key employee threshold under Code section 416(i)(1)(A)(i) |
$ 170,000 |
$ 170,000 |
|
Exclusion for elective deferrals under Code section 402(g)(3) |
$ 18,000 |
$ 17,500 |
|
Annual compensation limit under Code section 401(a)(17), 404(l), 408(k)(3)(C),and 408(k)(6)(D)(ii) |
$ 265,000 |
$ 260,000 |
|
Dollar limitation concerning the definition of key employee in a top-heavy plan under Code section 416(i)(l)(A)(i) |
$ 170,000 |
$ 170,000 |
|
Allowed cost of living adjustments to the compensation limitation under Code section 401(a)(17) |
$ 395,000 |
$ 385,000 |
|
Deferred compensation plans of state and local governments and tax-exempt organizations under Code section 457(e)(15) |
$ 18,000 |
$ 17,500 |
|
Compensation amounts of the income Tax Regulations concerning the definition of “control employee” for fringe benefit valuation purposes under Code section 1.61-21(f)(5)(i) |
$ 105,000 |
$ 105,000 |
|
Compensation regarding simplified employee pensions (SEPs) under Code section 408(k)(2)(C) |
$ 600 |
$ 550
|
|
Limitation regarding SIMPLE retirement accounts under Code section 408(p)(2)(E) |
$ 12,500 |
$ 12,000
|
|
Deductible amount for an individual making qualified retirement contributions under Code section 219(b)(5)(A) |
$ 5,500 |
$ 5,500
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