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

Trust is built before volatility arrives
Trust is built before volatility arrives

Markets will always create reasons for investors to worry. The advisor’s role is not to predict uncertainty, but to help clients understand why volatility should not derail a well-built financial plan.

Fintech bytes: Orion and Flourish bring client cash into advisor workflows
Fintech bytes: Orion and Flourish bring client cash into advisor workflows

Plus, Asset-Map partners with Contio to elevate the advisor meeting experience, and MyVest claims an innovation in portfolio management with separately managed models.

Advisor moves: LPL lands $1B group from Ameriprise
Advisor moves: LPL lands $1B group from Ameriprise

Meanwhile, Cetera has drawn advisors managing around $390 million from LPL and Commonwealth, while Raymond James' financial institutions division announces its own LPL hire in Indiana.

Bluespring Wealth snaps up $1.1B New Jersey RIA in fifth deal of 2026
Bluespring Wealth snaps up $1.1B New Jersey RIA in fifth deal of 2026

Synthesis Wealth Planning brings a fivefold asset growth story and a recently merged practice to the Bluespring fold.

Clients expect to know if you use AI, but don’t realize that their portfolios are likely exposed
Clients expect to know if you use AI, but don’t realize that their portfolios are likely exposed

Janus Henderson Investors research reveals demand for transparency, but lack of awareness of AI’s prevalence in the corporate world.

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

SPONSORED Durability over scale: What actually defines a great advisory firm

Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline