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2015 Benefit Limits

November 4, 2014

Overview

The Internal Revenue Service and Social Security Administration have announced increases in various retirement plan benefit and employment tax limits for 2015. These adjustments are made to reflect price and wage inflation, or to implement other increases dictated by law. The limits for 2015, as compared to those in effect for the current year, are set forth below. Many of the limits remain unchanged.

RETIREMENT PLAN LIMITS

2014

2015

Limits on Benefits and Contributions:

401(k) & 403(b) plans, elective deferral limit

457(b) plan, total contribution limit

Age 50 catch-up contribution limit

Defined contribution plan, total contribution limit

Defined benefit plan, annual accrual limit

$17,500

$17,500

$5,500

$52,000

$210,000

$18,000

$18,000

$6,000

$53,000

$210,000

"Highly Compensated Employee" status $115,000 $120,000
Annual Compensation Limit $260,000 $265,000
"Key Employee" officer status $170,000 $170,000

SIMPLE plans:

Elective deferral limit

Catch-up contribution limit

$12,000

$2,500

$12,500

$3,000

IRAs

Contribution limit

Catch-up contribution limit

$5,500

$1,000

$5,500

$1,000

SOCIAL SECURITY LIMITS

2014

2015

FICA Wage Base

$117,000

$118,500

Earnings Test Threshold:

Before retirement age

Year of normal retirement

$15,480

$41,400

$15,720

$41,880

Maximum Monthly Benefit

$2,642

$2,663

HEALTH SAVINGS ACCOUNTS

2014

2015

Annual HSA Contribution Deduction Limit:

Self-only coverage

Family coverage

Catch-up contribution

$3,300

$6,550

$1,000

$3,350

$6,650

$1,000

Out-of-Pocket Spending Limit:

Self-only coverage

Family coverage

$6,350

$12,700

$6,450

$12,900

Minimum Annual Deductible:

Self-only coverage

Family coverage

$1,250

$2,500

$1,300

$2,600

HEALTH CARE FSA

2014

2015

Annual Salary Reduction Limit

$2,500

$2,550

QUALIFIED TRANSPORTATION FRINGE BENEFIT

2014

2015

Maximum Monthly Qualified Parking Benefit

$250

$250

Maximum Monthly Qualified Transit Benefit

$130

$130

For further information or questions regarding the 2015 benefit limits, please contact Wally Miller at 541-686-3299 or wmiller@schwabe.com.


IRS rules of practice require us to inform you that any federal tax advice contained in this correspondence is not intended or written to be used, and cannot be used, by the recipient or any taxpayer for the purpose of avoiding tax penalties under the Internal Revenue Code.

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