Annual Limit and Applicable Internal Revenue Code Section | 2015 | 2014 |
1. Maximum elective deferrals to Code §§401(k), 403(b), and 457(b) plans. [Code §402(g)] | $18,000 | $17,500 |
Participants who defer to both an employer sponsored 401(k) and 403(b) plan during the calendar year must share a single 402(g) limit. But if a participant defers to both a 401(k) or 403(b) plan, and a 457(b) plan he has two limits: (i) one limit to be shared by the 401(k) and 403(b) plan, and (ii) a second limit for the 457(b) plan. | ||
2. Maximum catch-up contribution for employees age 50 or older. [Code §414(v)] | $6,000 | $5,500 |
3. Maximum compensation that can be considered by a qualified retirement plan. [Code §401(a)(17)] | $265,000 | $260,000 |
4. Maximum contributions and forfeitures that may be contributed to a participant's defined contribution plan account. [Code §415(c)] | $53,000 | $52,000 |
5. Maximum annual pension from a defined benefit plan. [Code §415(b)] | $210,000 | $210,000 |
6. Highly-compensated employee (HCE) threshold -- if a participant’s gross pay equals or exceeds this amount in 2015, the participant will be treated as an HCE in 2016. [Code §414(q)] | $120,000 | $115,000 |
7. Compensation limit included in “key employee” definition for top heavy plans. [Code §416] | $170,000 | $170,000 |
8. Maximum compensation that may be considered by a grandfathered governmental retirement plan. [Code §401(a)(17)] | $390,000 | $385,000 |
9. Maximum contributions to a health flexible spending account (FSA). | $2,550 | $2,500 |
10. Maximum limit on commuter highway vehicles (van pools) and transit pass benefits. (No change from 2014 limit.) | $130 | $130 |
11. Maximum limit on qualified parking benefits. (No change from 2014 limit.) | $250 | $250 |
Applying the 2015 Qualified Retirement Plan Limits to Non-Calendar Year Plans
When applying the IRS’ 2015 limits to non-calendar year plans, plan sponsors should keep the following in mind:
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Katherine L. Aizawa
San Francisco, California
415.438.6483
kaizawa@foley.com
Casey K. Fleming
Milwaukee, Wisconsin
414.319.7314
cfleming@foley.com
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Chicago, Illinois
312.832.4562
bmorgan@foley.com