Executive Compensation, Benefits & ERISA

The cost-of-living adjustments affecting the dollar limits for qualified retirement plans for 2015 has been issued by the Internal Revenue Service. Among the changes to the limits is the increase to the elective deferral amount from $17,500 to $18,000 for employees who participate in 401(k) plans or 403(b) plans. The catch-up contribution for employees who are age 50 or older will increase from $5,500 to $6,000. The schedule below shows the new dollar amounts for the limits commonly used in the administration of retirement plans.

Administrators of qualified retirement plans should review their plan documents and employee communications and update such materials as necessary to reflect the new limits for 2015.

Category	2014	2015
Elective Deferrals for 401(k) and 403(b) Plans (Internal Revenue Code §402(g))	$17,500	$18,000
Catch-Up Contributions for Age 50 and older (Internal Revenue Code §414(v))	$5,500	$6,000
Annual Additions for Defined Contribution Plans (Internal Revenue Code §415(c))	$52,000	$53,000
Annual Benefits for Defined Benefit Plans (Internal Revenue Code §415(b))	$210,000	$210,000
Annual Compensation Limit (Internal Revenue Code §401(a)(17))	$260,000	$265,000
Highly Compensated Employee (Internal Revenue Code §414(q))	$115,000	$120,000
Social Security Wage Base OASDI	$117,000	$118,500
Individual Retirement Account Contributions (Internal Revenue Code §219)	$5,500	$5,500

For more information on this alert or other ERISA matters, please contact:

Fred R. Green at +1 212 592 5910 or [email protected]

© 2014 Herrick, Feinstein LLP. ERISA Alert is published by Herrick, Feinstein LLP for information purposes only. Nothing contained herein is intended to serve as legal advice or counsel or as an opinion of the firm.