The IRS has released the cost-of-living adjustments applicable to the dollar limitations for pension plans (and other items) for the 2015 tax year.
|401(k), SARSEP, 403(b), and 457 plan deferrals/catch-up||$18,000/$6,000||$17,500/$5,500|
|SIMPLE plan deferrals/catch-up||$12,500/$3,000||$12,000/$2,500|
|Compensation defining highly compensated employee*||$120,000||$115,000|
|Compensation defining key employee/officer||$170,000||$170,000|
|Defined benefit plan limit on annual benefits||$210,000||$210,000|
|Defined contribution plan limit on annual additions||$53,000||$52,000|
|Maximum compensation limit for allocation and accrual purposes||$265,000||$260,000|
|SEP minimum compensation limit for an allocation||$600||$550|
|SSA compensation limit||$118,500||$117,000|
|* 2014 amount for use in 2015 plan year tests|
Traditional IRA changes. There also are changes in 2015 to the adjusted gross income (AGI) “phaseout” limits for determining what portion of contributions to a traditional IRA are deductible. For taxpayers who are active participants filing a joint return (or qualified widow(er)s), the deduction is phased out with a combined AGI of $98,000 to $118,000 (up from $96,000 to $116,000). For taxpayers other than “married filing separate returns,” the deduction phaseout range is $61,000 to $71,000 AGI (up from $60,000 to $70,000). For a taxpayer who is not an active participant but whose spouse is an active participant, the deduction phaseout range is a combined AGI of $183,000 to $193,000 (up from $181,000 to $191,000).
Roth IRA changes. There is also an AGI-based limitation for determining the maximum Roth IRA contribution. For married taxpayers filing a joint return (or qualified widow(er)s), the contribution phaseout range is from $183,000 to $193,000 (up from $181,000 to $191,000). The AGI phaseout range for single taxpayers is $116,000 to $131,000 (up from $114,000 to $129,000).
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