The IRS has announced the 2015 cost of living adjustments for retirement plans.
The limitation on the annual benefit under a defined benefit plan remained unchanged at $210,000.
The limit on the annual additions to a participant's defined contribution account has increased from $52,000 to $53,000.
The maximum amount of annual compensation that can be taken into account for various qualified plan purposes has increased from $260,000 to $265,000.
The limit on the exclusion for elective deferrals increased from $17,500 to $18,000. This limitation affects elective deferrals to Section 401(k) plans, Section 403(b) plans, and the Federal Government's Thrift Savings Plan. The limit on catch up contributions for those plans increased from $5,500 to $6,000.
The maximum amount of compensation an employee may elect to defer for a SIMPLE plan increased from $12,000 to $12,500. The limit on catch up contributions for those plans increased from $2,500 to $3,000.
Disclaimer: The items included in the Tax Tip Tuesday Video Blog are informational only and are not meant as tax advice. Consult with your tax advisor to determine how any item applies to your situation. IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advise contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein