IRS sets cost of living adjustments for 2015

Contribution limits climb but not for IRAs
NOV 20, 2014
Employees will be able contribute more to their defined contribution plans in tax year 2015, thanks to cost-of-living adjustments announced Thursday by the Internal Revenue Service. Contribution limits for employees participating in 401(k), 403(b), most 457 plans and the federal government's $400 billion Thrift Savings Plan will rise to $18,000 from $17,500. Employees aged 50 and over will be able to contribute an additional $6,000, up from the current $5,500 limit. The limitation on the annual benefit under a defined benefit plan remains unchanged at $210,000, while the limitation for defined contribution plans increased to $53,000 from $52,000. The definition of a highly compensated employee increased to $120,000 from $115,000. For employee stock ownership plans, the maximum account balance subject to a five-year distribution period increased to $1.07 million from $1.05 million, the IRS said. Limits on contributions to individual retirement accounts remain unchanged because the statutory thresholds that trigger cost-of-living adjustments were not met. Income limits for tax deductions related to IRA and Roth IRA contributions were raised to adjust for inflation. (Hazel Bradford is a reporter at sister publication Pensions & Investments)

Latest News

Raymond James taps Vanguard's chief architect to drive AI strategy
Raymond James taps Vanguard's chief architect to drive AI strategy

The broker-dealer giant's newest C-suite hire brings 30 years of enterprise technology leadership, including time at Fidelity, to its expanding AI agenda.

Court upholds CFTC denial of whistleblower payout in $1.475B currency case
Court upholds CFTC denial of whistleblower payout in $1.475B currency case

He warned regulators in 2011 - two years before the scandal hit the headlines.

Social Security’s 2032 cliff could hit retirees in every state
Social Security’s 2032 cliff could hit retirees in every state

A new analysis finds Social Security insolvency would trigger automatic benefit cuts nationwide with ripple effects for retirees, local economies and advisers.

Chicago pension funds win Delaware order over Paramount-Skydance merger files
Chicago pension funds win Delaware order over Paramount-Skydance merger files

Third Delaware ruling on the deal - and Shari Redstone's role is back in frame

SPONSORED Estate planning isn't a service add-on. It's your retention strategy.

As $84 trillion prepares to change hands, advisors who treat estate planning as peripheral are quietly building a sieve, not a book.

SPONSORED Why strategy matters more than performance

In volatile markets, the advisors who win aren't the ones with the best calls - they're the ones whose clients stay the course.