2015 COLA Limits
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.
| IRS Limits | 2015 | 2014 |
| 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 |
| IRA contributions/catch-up | $5,500/$1,000 | $5,500/$1,000 |
| SEP minimum compensation limit for an allocation | $600 | $550 |
| QLAC maximum | $125,000 | $125,000 |
| 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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