2015 Pension Plan Limitations

Pension Plan Limits 2015

The 2015 cost-of-living adjustments on dollar limitation for pension plans and other retirement-related items were released by the IRS. Some limits will remain unchanged in 2015 because the increase in the Consumer Price Index did not meet the statutory thresholds for their adjustment, however, other limitations will increase for 2015. Highlights include:

  • Elective Deferral: The elective deferral limit for employees who participate in 401(k), 403(b) and most 457 plans increased from $17,500 to $18,000.
  • Catch-Up: The catch-up contribution limit for employees age 50 and over who participate in 401(k), 403(b) and governmental 457 increased from $5,500 to $6,000.
  • Annual Defined Contribution Limit: The limitation for defined contribution plans increased from $52,000 to $53,000.
  • Annual Compensation Limit: The compensation limit increased from $260,000 to $265,000.
  • HCEs: The threshold for identifying highly compensated employees increased from $115,000 to $120,000.
  • Key Employees: The threshold for identifying key employees for purposes of top-heavy remains unchanged at $170,000.
  • Wage Base: The Social Security taxable wage base is $118,500 in 2015, up from $117,000 this year. (The wage base is determined by the Social Security Administration, not the IRS.)
Posted on October 23, 2014 .