The 2015 plan limits, applicable to defined benefit and defined contribution plans, have been issued by the IRS (highlights below).
| 2014 | 2015 |
Defined benefit plan annual limit | $210,000 | $210,000 |
Defined contribution plan annual limit | $52,000 | $53,000 |
Elective deferral limit for purposes of cash or deferred arrangements (401(k) plans) and tax-sheltered annuities (403(b) plans) | $17,500 | $18,000 |
Maximum deferral limit for 457 plans | $17,500 | $18,000 |
>Age 50 Catch-up Contribution Limit to 401(k), 403(b) or 457(b) Plans | $5,500 | $6,000 |
Maximum deferral limit for SIMPLE plans | $12,000 | $12,500 |
>Age 50 Catch-up Contribution Limit to SIMPLE Plans | $2,500 | $3,000 |
Minimum compensation considered in determining eligibility for a SEP | $550 | $600 |
Threshold for Highly Compensated Employee (HCE) | $115,000 | $120,000 |
Key Employee Compensation Limit for Top Heavy Plan Purposes | $170,000 | $170,000 |
Annual Compensation Limit | $260,000 | $265,000 |
Sources:
2015 Social Security Cost-of-living Adjustment
The 2015 cost of living adjustment to the Social Security wage base is increased from $117,000 to $118,500. The Medicare tax is generally assessed on all wages. The combined tax rate remains at 7.65% - the Social Security portion is 6.2% on wages up to the applicable maximum taxable amount; the Medicare portion is 1.45% on all wages. Additional adjustments are included in the SSA’s Fact Sheet: 2015 Social Security Cost-of-Living Adjustments.
2015 Medicare Parts A and B: Premium and Deductible Rates
The Centers for Medicare and Medicaid Services has released the applicable Medicare Part A and Part B premium and deductible rates for 2015.
2015 | Part A |
Premium | - No monthly Part A premium for those with 40+ quarters of Medicare-covered employment.
- $407 per month for people who are not otherwise eligible for premium-free hospital insurance and <30 quarters of Medicare-covered employment.
|
Deductible | - $1,260 for first 60 days of inpatient care;
- Additional $315 per day for days 61 through 90;
- Additional $630 per day beyond the 90th day.
|
Part B Premium and Deductible
The standard Medicare Part B monthly premium ($104.90) the Part B deductible ($147) for 2015 remains unchanged from 2014.
Source: Medicare 2014 & 2015 costs at a glance
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