COLA – IRS Cost of Living Adjustments

Cost-of-living adjustments (COLAs) are based on increases in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The CPI-W is determined and published by the Bureau of Labor Statistics, Department of Labor.

ANNUAL LIMITS 2012, 2013 2014

 

Defined Benefit Plans

 

$200,000
$205,000

 

$210,000

The maximum dollar limitation for annual benefits under defined benefit plans under Internal Revenue Code (IRC) Section 415(b)(1)(A).    
     
401(k) Deferral Limit $17,000
$17,500
$17,500 

The limitation on cumulative elective deferrals to a 401(k), as coordinated under IRC Section 403(b) & 457(b)(15).

   
     
Age 50+ Catchup Limits $5,500
$5,500
$5,500

The special catch-up available for individuals at least 50 years old anytime during the year and make eligible pre-tax contributions to 401(k), 403(b), and 457(e).

The special catch-up to a SIMPLE plan remains  at $2,500 under 414(v)(2)(B)(ii).

   
     
Definition of Key Employee  $165,000
$165,000
$170,000

The compensation threshold used for determining key employees under IRS Section 416(i)(1)(A)(i).

   
     
Definition of Highly Compensation $115,000
$115,000
$115,000

The compensation threshold used for determining highly compensated employees under IRC Section 414(q)(1)(B).

   
     
Compensation Limit $250,000
$255,000
$260,000

The annual limit of compensation that may be taken into account for contribution purposes in accordance with IRC Section 401(a)(17), 404(I), 408(k)(3)(C), and 408(k)(6)(D)(ii).

   
     
Taxable Wage Base $110,100
$113,700
$117,100

Maximum amount of earnings subject to payroll tax.

   
     
IRA Contribution Limit $5,500
$5,500
$5,500
     
IRA Catch-Up Contributions $1,000
$1,000
$1,000
     
This material was created to provide accurate and reliable information on the subjects covered. It is not intended to provide specific legal, tax or other professional advice. The services of an appropriate professional should be sought regarding your individual situation.
June 17th, 2015 by The Diamond Benefit Group