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401k and Retirement Plan Limits for the Tax Year 2015
Plan limits for 2016 can be found here.
On October 23, 2014, the IRS announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2015. Many of the pension plan limitations will change for 2015 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment. However, other limitations will remain unchanged because the increase in the index did not meet the statutory thresholds that trigger their adjustment.
| Chart of Select Limits |
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| 401k Plan Limits for Year |
2015 |
2014 |
2013 |
2012 |
2011 |
2010 |
2009 |
| 401k Elective Deferrals |
$18,000 |
$17,500 |
$17,500 |
$17,000 |
$16,500 |
$16,500 |
$16,500 |
| Annual Defined Contribution Limit |
$53,000 |
$52,000 |
$51,000 |
$50,000 |
$49,000 |
$49,000 |
$49,000 |
| Annual Compensation Limit |
$265,000 |
$260,000 |
$255,000 |
$250,000 |
$245,000 |
$245,000 |
$245,000 |
| Catch-Up Contribution Limit |
$6,000 |
$5,500 |
$5,500 |
$5,500 |
$5,500 |
$5,500 |
$5,500 |
| Highly Compensated Employees |
$120,000 |
$115,000 |
$115,000 |
$115,000 |
$110,000 |
$110,000 |
$110,000 |
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| Non-401k Related Limits |
| 403(b)/457 Elective Deferrals |
$18,000 |
$17,500 |
$17,500 |
$17,000 |
$16,500 |
$16,500 |
$16,500 |
| SIMPLE Employee Deferrals |
$12,500 |
$12,000 |
$12,000 |
$11,500 |
$11,500 |
$11,500 |
$11,500 |
| SIMPLE Catch-Up Deferral |
$3,000 |
$2,500 |
$2,500 |
$2,500 |
$2,500 |
$2,500 |
$2,500 |
| SEP Minimum Compensation |
$600 |
$550 |
$550 |
$550 |
$550 |
$550 |
$550 |
| SEP Annual Compensation Limit |
$265,000 |
$260,000 |
$255,000 |
$250,000 |
$245,000 |
$245,000 |
$245,000 |
| Social Security Wage Base |
$118,500 |
$117,000 |
$113,700 |
$110,100 |
$106,800 |
$106,800 |
$106,800 |
Download a PDF of this chart.
Highlights of the IRS announcement include the following:
- The elective deferral (contribution) limit for employees who participate in 401k, 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 401k, 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 deduction for taxpayers making contributions to a traditional IRA is phased out for singles and heads of household who are covered by a workplace retirement plan and have modified adjusted gross incomes (AGI) between $61,000 and $71,000, up from $60,000 and $70,000 in 2014. For married couples filing jointly, in which the spouse who makes the IRA contribution is covered by a workplace retirement plan, the income phase-out range is $98,000 to $118,000, up from $96,000 to $116,000. For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple's income is between $183,000 and $193,000, up from $181,000 and $191,000. For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.
- The AGI phase-out range for taxpayers making contributions to a Roth IRA is $183,000 to $193,000 for married couples filing jointly, up from $181,000 to $191,000 in 2014. For singles and heads of household, the income phase-out range is $116,000 to $131,000, up from $114,000 to $129,000. For a married individual filing a separate return, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.
- The AGI limit for the saver's credit (also known as the retirement savings contribution credit) for low- and moderate-income workers is $61,000 for married couples filing jointly, up from $60,000 in 2014; $45,750 for heads of household, up from $45,000; and $30,500 for married individuals filing separately and for singles, up from $30,000.
The next page contains details on both the unchanged and adjusted limitations for 2015.
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