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IRS Announces 2015 Pension Plan Limitations

401(k) Plans|Benefits|ERISA

By Jeanne Barrett

The IRS recently announced the 2015 cost-of-living adjustments for the annual contribution and other dollar limits affecting 401(k) plans and other retirement plans.  Highlights include an increase of $500 to the annual maximum salary deferral for 401(k) plans as well as the catch-up limit for individuals age 50 or older. 

Limits for 2015 are as follows:

Annual Salary Deferral 401(k) and 403(b) Plans $18,000
Age 50 catch-up contributions $6,000
Maximum total annual contributions $53,000
Maximum annual compensation $265,000
Traditional and Roth IRA contributions $5,500
Traditional and Roth IRA catch-up contributions $1,000
SIMPLE 401(k) and IRA contribution limit $12,500
Compensation dollar limit used to determine key employees in a top-heavy plan $170,000
Compensation threshold for highly-compensated employees "HCE" $120,000

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Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

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