2015 Retirement Plan Limits

By Annmarie Novotney, CPA - Senior Accountant

The IRS has released the 2015 retirement plan limits.

• The annual compensation limit is $265,000.
• Elective deferrals to 401(k), 457 and 403(b) plans are limited to $18,000.
• The catch-up contribution to a 401(k) or 403(b) plan for persons age 50 or older is limited to $6,000.
• The limit on annual contributions to an IRA remains unchanged at $5,500. 
• The catch-up contribution to an IRA for persons age 50 or older remains unchanged at $1,000.
• The limit on elective deferrals to a SIMPLE retirement account is $120,000.
• The catch-up contribution limit to a SIMPLE plan for persons age 50 or older is $3,000.
• The limitation used to define a highly compensated employee is $120,000.
• The limitation used to define a key employee in a top-heavy plan remains unchanged at $170,000.
• The limitation under Sec. 415(c) on contributions to a defined contribution retirement plan is $53,000.
• The annual benefit limit for a defined benefit plan under Sec. 415(b) is $210,000.

Source:  http://www.irs.gov/uac/Newsroom/IRS-Announces-2015-Pension-Plan-Limitations;-Taxpayers-May-Contribute-up-to-$18,000-to-their-401(k)-plans-in-2015 (* Link removed by www.irs.gov.)

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