Higher retirement plan limits on tap — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Higher retirement plan limits on tap

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The IRS has announced the following inflation-based adjustments for qualified retirement plans in 2015:

  • The maximum elective deferral limit for participants in 401(k), 403(b), and most 457 plans increases to $18,000 (up from $17,500).
  • The limit for catch-up contributions to 401(k), 403(b), and most 457 plans increases to $6,000 (up from $5,500)
  • The limit for additions to defined contribution plans increases to $53,000 (up from $52,000).
  • The limit for contributions to a SIMPLE increases to $12,500 (up from $12,000).
  • The limit for catch-up contributions to a SIMPLE increases to $3,000 (up from $2,500).
  • The maximum compensation amount for qualified retirement plans increases to $265,000 (up from $260,000).

Note: Certain limits, including contribution limits for IRAs, remain the same. But the phase-out range for deductible IRA contributions were adjusted slightly. (IRS Internal Release 2014-99, 10/23/14)

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