The Internal Revenue Service (IRS) recently announced cost-of-living adjustments impacting and (FSAs) for 2015. For retirement plans, increases were made to most of the general plan limitations, including the individual limits on deferrals and catch-up contributions, as well as the limit on annual compensation.Ìý For FSAs, the inflation-adjusted limit will increase by $50.Ìý No change was made to transit and parking pre-tax subsidies or dependent care assistance plans.Ìý The following table highlights the changes made by the IRS.Ìý
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Editor’s Note: The content of this article was heavily contributed by the attorneys of Ogletree Deakins, a labor and employment law firm representing management. This information should not be relied upon as legal advice.
| CodeÌýSection | 2015 | 2014 |
| 401(a)(17)/404(l)ÌýAnnual Ìý Compensation | $265,000 | $260,000 |
| 402(g)(1) Elective Ìý Deferrals | 18,000 | 17,500 |
| 414(v)(2)(B)(i) Ìý Catch-up Contribution | 6,000 | 5,500 |
| 415(b)(1)(A) Ìý Defined Benefit Plan Limits | 210,000 | 210,000 |
| 415(c)(1)(A) Ìý Defined Contribution Plan Limits | 53,000 | 52,000 |
| 457(e)(15) Ìý Deferral Limit | 18,000 | 17,500 |
| 414(q)(1)(B) Ìý Highly Compensated Employee Threshold | 120,000 | 115,000 |
| 409(o)(1)(C) ESOP Ìý Limits | 1,070,000ÌýÌýÌý Ìý 210,000 | 1,050,000Ìý Ìý 210,000 |
| 416(i)(1)(A)(i) Ìý Key Employee | 170,000 | 170,000 |
| 408(p)(2)(E) Ìý SIMPLE Maximum Contributions | 12,500 | 12,000 |
| 414(v)(2)(B)(ii) Ìý SIMPLE Catch-up Contribution | 3,000 | 2,500 |
| 408(k)(2)(C) SEP Ìý Minimum Compensation | 600 | 550 |
| 408(k)(3)(C) SEP Ìý Maximum Compensation | 265,000 | 260,000 |
| 1.61-21(f)(5)(i) Ìý Control Employee | 105,000 | 105,000 |
| 1.61-21(f)(5)(iii) Ìý Control Employee | 215,000 | 210,000 |
| Social Security Ìý Tax Wage Base | 118,500 | 117,000 |
| Health FSA | 2,550 | 2,500 |
| Dependent Care Ìý Assistance Plans | No change | 5,000 for Ìý qualified individuals and those who are married and file a joint return; Ìý 2,500 for those who are married and file separate returns |
| Qualified Transit Ìý Benefits | No change | $130 per month |
| Qualified Parking Ìý Benefits | No change | $250 per month |