2015 – A New Year and new IRS limits

2015 Maximum Benefit and Contribution Limits: The IRS has updated the maximum benefit and contribution limits for 2015. Click here to access the table.

Many of the retirement plan limitations will be changing for 2015 as the increase in the cost-of-living index met the statutory thresholds that trigger adjustments. Some of these changes include:

  • Elective deferrals for employees who participate in 401(k), 403(b), etc. increased from $17,500 to $18,000.
  • Catch up contributions for employees aged 50 and over who participate in 401(k), 403(b), etc. increased from $5,500 to $6,000.
  • SIMPLE IRA limits have increased from $12,000 to 12,500, and catch up contributions to a SIMPLE IRA increased from $2,500 to $3,000.
  • The maximum compensation limit to calculate the maximum retirement plan contributions has increased from $260,000 to $265,000.

Social Security Wage Base: Up to $118,500 from $117,000.

Healthcare Flexible Spending Accounts (HCFSA): For plan years beginning in 2015 the permissible salary reduction amount has increased to $2,550. The HCFSA plan document must allow for this automatic increase or be amended to reflect the new limit. Employers are not required to increase the salary reduction maximum unless the plan document requires it.

2015 Estate and Gift Tax Limits: The 2015 annual gift amount you can give to someone without having to complete a gift tax return is $14,000. This remains unchanged from 2014. The federal estate tax exemption – the amount an individual can leave to heirs without having to pay federal estate tax – will be $5.43 million in 2015 (up $90,000 from 2014).

2015 Standard Mileage Rates: Beginning January 1, 2015, the standard mileage rate for business miles is increased from 56 cents per mile to 57.5 cents per mile.