Individual 401k Contribution Limits Increased for 2015

Can you believe that the year is almost over? Before you know it, Thanksgiving and Christmas will be here and gone, then we’ll be in 2015! Keep an eye out as we’ll be sharing some helpful information to keep your business informed as we move into a new year.

In late October 2014, the IRS released the newest contribution limits for all retirement plans, including Individual 401k or Solo 401k plan. The increase of individual 401k contribution limits is an effort by the IRS to allow for cost of living adjustments. It’s important to be aware of these limits so that participants can take full advantage of their plans.

Below you’ll see the 2015 limits along with the two years prior. These will affect dollar limitations for pension plans and other retirement-related items. An individual can now defer the lesser of $18,000 or 100 percent of pay. Compensation limits and cost of living increases are applicable to defined contribution retirement plans.

	2015	2014	2013
Maximum Annual Compensation Limit	265,000	260,000	255,000
Maximum Elective Deferral Limit	18,000	17,500	17,500
Maximum Catch-up Contribution Limit	6,000	5,500	5,500
Maximum Annual Contribution Limit	53,000	52,000	51,000
Highly Compensated Employee (HCE) Compensation Threshold	120,000	115,000	115,000
Key Employee Compensation Threshold (Officer)	170,000	170,000	165,000
Social Security Taxable Wage Base	118,500	117,000	113,700