Latest retirement plan limits feature a ton of changes
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.
- Share on
Free Training & Resources
Webinars
Provided by Yooz
Further Reading
A lot more contractors and businesses like yours that receive payments via CashApp, PayPal or Venmo have been bracing for getting a 2022 Fo...
Less than six months ago, United Parcel Service (UPS) announced its full-time drivers would be paid $170K per year in salary and benefits a...
Spirit Airlines didn’t fail overnight. The collapse was years in the making – a compounding sequence of financial decisions that an...
If any employees sustain injuries and can’t work, your company may end up compensating them. If so, take the time to double-check entries...
Due to new IRS regs, employers will be subject to stricter e-filing requirements in 2024. Find out what’s coming and check out the li...
The metropolitan areas where employers and employees want to settle are in flux this decade. COVID-19 accelerated the flexible on-site ...
