By Joshua A. Diveley.
The IRS has announced the inflation adjusted limits applicable to retirement plans for 2015. Some of the key adjustments for defined contribution plans (including 401(k), 403(b), 457 and profit sharing plans) include:
- The maximum salary deferral limit is raised from $17,500 to $18,000
- The additional catch-up contribution deferral limit is raised from $5,500 to $6,000
- The maximum annual addition to the plan (excluding catch-up contributions) is raised from $52,000 to $53,000
- The maximum covered compensation for an employee is raised from $260,000 to $265,000
- The compensation threshold to be considered a “highly compensated employee” (absent a top-paid group election) is raised from $115,000 to $120,000
A copy of the IRS release with additional adjustments affecting retirement plans is available here.
© 2014 Parsonage Vandenack Williams LLC
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