EMPLOYEE BENEFITS E-UPDATE: Updated Cost-of-Living Adjustments for 2015 Issued for Your Retirement Plan Administration
The Internal Revenue Service has announced its annual cost-of-living adjustments for 2015. For qualified retirement plans, certain plan limits have changed from the 2014 limits because an increase in the cost-of-living index triggered an adjustment. For example, the elective deferral limit increased to $18,000 (up from $17,500), the catch-up elective deferral limit increased to $6,000 (up from $5,500), and the overall defined contribution annual limitation increased to $53,000 (up from $52,000). However, some limits, such as the limitation on the annual benefit under a defined benefit plan ($210,000) and the dollar limitation concerning the definition of key employee in a top-heavy plan ($170,000), have not changed.
To assist plan sponsors, Ice Miller's updated Cost-of-Living Adjustment (COLA)
chart lists the cost-of-living adjustments to retirement plan limitations for the years 2002 through 2015. We have included the adjusted limits, as well as Pension Benefit Guaranty Corporation guarantees, federal income tax amounts and Social Security and Medicare contribution rates and wage bases for the past 14 years, as a handy reference tool. If you would like a laminated copy of the chart, please e-mail your name and address to email@example.com
To discuss the impact of these cost-of-living adjustments, please contact the Ice Miller Employee Benefits Group
This publication is intended for general information purposes only and does not and is not intended to constitute legal advice. The reader must consult with legal counsel to determine how laws or decisions discussed herein apply to the reader's specific circumstances.