On October 23, 2014, the IRS announced the 2015 cost-of-living increases applicable to the dollar limits for retirement plans. The annual limit for elective deferrals to 401(k) and 403(b) plans will increase from $17,500 to $18,000 and the annual limit for catch-up contributions for individuals age 50 or over will increase from $5,500 to $6,000. The Social Security Administration also recently announced that the Social Security wage base will increase from $117,000 to $118,500 for 2015. 

Listed below are the principal limits applicable for 2015 as compared to those for 2014.

 

Limit	2015	2014
Compensation Limit	$265,000	$260,000
Elective Deferrals (401(k), 403(b), 457(b))	$18,000	$17,500
Catch-up Contributions	$6,000	$5,500
Defined Contribution Plan 415 Limit	$53,000	$52,000
Defined Benefit Plan 415 Limit	$210,000	$210,000
Highly Compensated Employee	$120,000	$115,000
Social Security Wage Base	$118,500	$117,000
SIMPLE Plan Limit	$12,500	$12,000
SIMPLE Catch-up Contributions	$3,000	$2,500