2015 Dollar Limits on Benefits & Compensation for Qualified Retirement Plans, SEPs and SIMPLEs
- October 28, 2014
The IRS recently announced the 2015 dollar limits on benefits and compensation for qualified retirement plans, SEPs and SIMPLEs.
Increases in the contribution and benefits limits are indexed annually based on cost-of-living adjustments subject to preset minimum increments (except for the Social Security Wage Base). Each limit applies to different measuring periods as indicated.
Most notable are the defined contribution maximum annual additions limit increase from $52,000 to $53,000, the maximum compensation limit increase from $260,000 to $265,000, the maximum 401(k) deferral limit from $17,500 to $18,000, the maximum 401(k) "catch-up" deferral limit from $5,500 to $6,000, the maximum SIMPLE deferral limit from $12,000 to $12,500, the maximum SIMPLE "catch-up" deferral limit from $2,500 to $3,000, and the Social Security Wage Base increase from $117,000 to $118,500.
Commentary In many instances, the increases in the compensation limit, the 401(k) and "catch-up" limits and the annual additions limit typically translate to increased contributions/benefits for the Key employees and business owners.
Increase in 2015 as compared to the 2014 limit shown in bold. Access 2011-2015 limits chart here or via link provided below.
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