You don’t have to wait another minute for the feds’ latest retirement plan limits for 2015. Accounting and Benefits pros have the latest limits ahead of schedule (for once) from the feds.
There are some key changes in contribution limits for employer-provided retirement plans. Here’s what you need to know:
• 401(k), 403(b) and 457 plan contributions have increaded to $18,000. That’s up from $17,500 last year.
• Catch-up contributions for those plans jump to $6K (up from $5,500).
• The annual defined-contribution limit from all sources will rise to $53,000 (from $52,000).
• Employee compensation limits for calculating contributions to defined-contribution plans increases to $265,000 (from $260,000).
• The limit on annual IRA contributions remains capped at $5,500.
• The IRA catch-up contribution limit (which isn’t tied to the inflation rate) also remains the same, at $1,000.
• The limitation on the annual benefit under a defined-benefit plan will remain at $210,000.
• And the earning threshold used to define a highly compensated employee will increase to $120,000 (up from $115,000).
For more info, visit the IRS’s website here.