Believe it or not 2014 is quickly approaching its end and that means updated retirement plan limits. Earlier this week the IRS announced these new limits for 2015. Some limits increased from 2014 to 2015, and some stayed flat. Highlights include:
- The compensation limit used in determining benefits and contributions for both defined benefit and defined contribution plans is increased from $260,000 to $265,000.
- For defined benefit plans, the maximum annual benefit for a participant with at least ten years of participation and a normal retirement age between 62 and 65 remains unchanged at $210,000.
- For defined contribution plans (profit sharing and 401(k) plans), the maximum annual contribution for a participant was increased from $52,000 to $53,000. While this limit includes salary deferrals, it does not include catch up contributions.
- The limit on salary deferrals for 401(k) plans increased from $17,500 to $18,000, and the limit on catch up contributions for 401(k) plans, which are available to participants who attain age 50 by the end of 2015, increased from $5,500 to $6,000.
You can find a printable version of the complete list of the new 2015 annual limits by visiting the Retirement Plan Limits page of our website.
As 2015 approaches, so does the deadline to set up a qualified plan for a 2014 calendar tax year. If you are interested in setting up a qualified plan, please contact us at 503.520.0848, or by visiting our Contact Us page.