IRS Announces 2015 Retirement Limits
Executive Director
On October 23, the Internal Revenue Service issued an announcement with the 2015 dollar limitations for pension and retirement-related plans. Some excerpts follow:
"Section 415 of the Internal Revenue Code provides for dollar limitations on benefits and contributions under qualified retirement plans...The limitation for defined contribution plans under Section 415(c)(1)(A) is increased in 2015 from $52,000 to $53,000.
"The dollar limitation under Section 416(i)(1)(A)(i) concerning the definition of key employee in a top-heavy plan remains unchanged at $170,000.
"The dollar amount under Section 409(o)(1)(C)(ii) for determining the maximum account balance in an employee stock ownership plan subject to a 5 year distribution period is increased from $1,050,000 to $1,070,000, while the dollar amount used to determine the lengthening of the 5 year distribution period remains unchanged at $210,000.
"The limitation used in the definition of highly compensated employee under Section 414(q)(1)(B) is increased from $115,000 to $120,000."