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Friday, October 24, 2014

They’re here!  The 2015 IRS plan limitations arrived a full week earlier than last year.  Most of the limitations have been adjusted upwards.  See the chart below (after the jump) to see the new limits as well as a summary of the limits over the preceding three years.

Type of Limitation 2015 2014 2013 2012
Elective Deferrals (401(k), 403(b), 457(b)(2) and 457(c)(1)) $18,000 $17,500 $17,500 $17,000
Section 414(v) Catch-Up Deferrals to 401(k), 403(b), 457(b), or SARSEP Plans (457(b)(3) and 402(g) provide separate catch-up rules to be considered as appropriate) $6,000 $5,500 $5,500 $5,500
SIMPLE 401(k) or regular SIMPLE plans, Catch-Up Deferrals $3,000 $2,500 $2,500 $2,500
415 limit for Defined Benefit Plans $210,000 $210,000 $205,000 $200,000
415 limit for Defined Contribution Plans $53,000 $52,000 $51,000 $50,000
Annual Compensation Limit $265,000 $260,000 $255,000 $250,000
Annual Compensation Limit for Grandfathered Participants in Governmental Plans Which Followed 401(a)(17) Limits (With Indexing) on July 1, 1993 $395,000 $385,000 $380,000 $375,000
Highly Compensated Employee 414(q)(1)(B) $120,000 $115,000 $115,000 $115,000
Key employee in top heavy plan (officer) $170,000 $170,000 $165,000 $165,000
SIMPLE Salary Deferral $12,500 $12,000 $12,000 $11,500
Tax Credit ESOP Maximum balance $1,070,000 $1,050,000 $1,035,000 $1,015,000
Amount for Lengthening of 5-Year ESOP Period $210,000 $210,000 $205,000 $200,000
Taxable Wage Base $118,500 $117,000 $113,700 $110,100
FICA Tax for employees and employers 7.65% 7.65% 7.65% 7.65%
Social Security Tax for employees 6.2% 6.2% 6.2% 4.2%*
Social Security Tax for employers 6.2% 6.2% 6.2% 6.2%
Medicare Tax for employers and employees 1.45% 1.45% 1.45% 1.45%
Additional Medicare Tax** .9% of comp > $200,000 .9% of comp > $200,000 0.9% of comp > $200,000

*This figure reflects a 2% reduction in the rate of tax for employees pursuant to the Tax Relief Act of 2010

**For taxable years beginning after 12/31/12, an employer must withhold Additional Medicare Tax on wages or compensation paid to an employee in excess of $200,000 in a calendar year.

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