CLIENT UPDATE

Putney, Twombly, Hall & Hirson LLP
521 Fifth Avenue
New York, NY 10175
Tel: (212) 682-0020

 

October 30, 2014

Retirement Plan Limits For The Tax Year 2015

On October 22, 2014, the Internal Revenue Service announced the 2015 Pension Plan Limitations.  They are as follows:

 

2015

2014

2013

IRAs

IRA Contribution Limit

$5,500

$5,500

$5,500

IRA Catch-Up Contributions

1,000

1,000

1,000

Joint Return

98,000

96,000

95,000

Single or Head of Household

61,000

60,000

59,000

SEP

SEP Minimum Compensation

600

550

550

SEP Maximum Contribution

53,000

52,000

51,000

SEP Maximum Compensation

265,000

260,000

255,000

SIMPLE Plans

SIMPLE Maximum Contributions

12,500

12,000

12,000

Catch-up Contributions

3,000

2,500

2,500

401(k), 403(b), Profit-Sharing Plans, etc.

Annual Compensation

265,000

260,000

255,000

Elective Deferrals

18,000

17,500

17,500

Catch-up Contributions

6,000

5,500

5,500

Defined Contribution Limits

53,000

52,000

51,000

ESOP Limits

*1,070,000
**210,000

*1,050,000
**210,000

*1,035,000
**205,000

 

 

 

 

Other

HCE Threshold

120,000

115,000

115,000

Defined Benefit Limits

210,000

210,000

205,000

Key Employee

170,000

170,000

165,000

457 Elective Deferrals

18,000

17,500

17,500

Control Employee (board member or officer)

105,000

105,000

100,000

Control Employee (compensation-based)

215,000

210,000

205,000

Taxable Wage Base

118,500

117,000

113,700

 

* Dollar amount under Sec. 409(o)(1)(C)(ii) for determining the maximum account balance in an ESOP.
** Dollar amount used to determine the Lengthening of 5-Year ESOP Period.

The link for the revised notice can be found at 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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If you have any questions please do not hesitate to contact us.