IRS Regulatory Changes for 2015

The IRS has released the following changes for the 2015 annual limits

The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $17,500 to $18,000.

The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $5,500 to $6,000

The limit on annual contributions to an Individual Retirement Arrangement (IRA) remains unchanged at $5,500. The additional catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of-living adjustment and remains $1,000.

The limitation for defined contribution plans under Section 415(c)(1)(A) is increased in 2015 from $52,000 to $53,000.

The annual compensation limit under Sections 401(a)(17), 404(l), 408(k)(3)(C) and 408(k)(6)(D)(ii) is increased from $260,000 to $265,000.

The dollar limitation under Section 416(i)(1)(A)(i) concerning the definition of key employee in a top-heavy plan remains unchanged at $170,000.

The limitation used in the definition of highly compensated employee under Section 414(q)(1)(B) is increased from $115,000 to $120,000.

The limitation for HSA plan contributions under Section 223(b)(2)(A) is increased in 2015 to $3,350 for an individual. The limitation for HSA plan contributions under Section 223(b)(2)(B) is increased in 2015 to $6,650 for a family. Additional contributions for individuals aged 55+ remains unchanged at $1,000.

The limitation for Dependent Care saving for 2015 remains unchanged at $5,000.

The limitation for Medical Savings Account for 2015 is increased for 2015 to $2,550.

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