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Dec 2014
15
December 15, 2014

Key Benefit Plan Limits For 2015


The IRS recently released its 2015 employee benefits limitations for retirement plans. The following chart lists common limitations relevant for many employers.

  2015 2014 2013
401(k), 403(b), 457(b), Pension, etc.
Annual Compensation $265,000 $260,000 $255,000
Elective Deferrals 18,000 17,500 17,500
Catch-up Contributions 6,000 5,500 5,500
Defined Contribution Limits 53,000 52,000 51,000
Defined Benefit Limits 210,000 210,000 205,000
HCE Threshold 120,000 115,000 115,000
Key Employee 170,000 170,000 165,000
ESOP Limits 1,070,000
210,000
1,050,000
210,000
1,035,000
205,000
IRA
IRA Contribution Limit $5,500 $5,500 $5,500
IRA Catch-Up Contributions 1,000 1,000 1,000
IRA AGI Deduction Phase-out Starting at
Joint Return $98,000 $96,000 $95,000
Single or Head of Household 61,000 60,000 59,000
SEP
SEP Minimum Compensation $600 $550 $550
SEP Maximum Contribution 53,000 52,000 51,000
SEP Maximum Compensation 265,000 260,000 255,000
SIMPLE Plans
SIMPLE Maximum Contributions $12,500 $12,000 $12,000
Catch-up Contributions 3,000 2,500 2,500
Other
457 Elective Deferrals $18,000 $17,500 $17,500
Control Employee (board member or officer) 105,000 105,000 100,000
Control Employee (compensation-based) 215,000 210,000 205,000
Taxable Wage Base 118,500 117,000 113,700
Health Plans
Out-of-Pocket Maximums (Self-Only)*± $6,600 $6,350 N/A
Out-of-Pocket Maximums (Other than Self-Only)*± 13,200 12,700 N/A
Transitional Reinsurance Fee (per Covered Life)§ 44 63 N/A
Health FSA Salary Reduction Cap# 2,550 2,500 $2,500
Employer Shared Responsibility - 4980H(a) Failure to Offer Coverage¤± 2,080 (Est.)† 2,000 N/A
Employer Shared Responsibility - 4980H(b) Failure to Offer Affordable, Minimum Value Coverage± 3,120 (Est.)† 3,000 N/A.


*These limits do not apply to grandfathered or retiree-only plans.
±These amounts are indexed to increase based on the average per capita premium for U.S. health insurance coverage from the prior calendar year.
§These fees apply on a calendar year basis.
#These fees apply on a plan year basis and are indexed for CPI-U.
¤These fees apply on a calendar year basis and are assessed monthly at 1/12 of the annual amount.
†The 2015 assessment amounts have not been released.  These numbers are estimates only based on increase in average per capita premium for U.S. health insurance coverage in 2014 as determined by HHS.

In addition, the Affordable Care Act (“ACA”) imposes a a fee to help fund the Patient Centered Outcomes Research Institute (“PCORI”).  For plans with years ending on or before September 30, 2014, the fee is $2.00 per Covered Life.  If the Plan Year ends between October 1, 2014 and December 31, 2014 (including calendar year plans), the fee is $2.08 per Covered Life.  These fee amounts are increased based on national health expenditures.

If you have any questions about the key benefit plan limits for 2015, please contact Mary Jo Larson, Amy Fredrickson, April Goff, or any other member of the Warner Norcross & Judd LLP Employee Benefits/Executive Compensation Practice Group.

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