2015 IRA and Pension Plan Limitations Announced

The 2015 IRA and pension plan limitations have been announced.  Below are some of the more common amounts.

The defined benefit plan limitation remains at $210,000 (same amount applicable for 2014).

The defined contribution plan maximum increases to $53,000 (up from $52,000 for 2014).

The annual compensation limit for most employer contributions increases to $265,000 (up from $260,000 for 2014).

A year of service for SEP coverage increase to $600 (up from the $550 applicable for 2014).

The maximum elective deferral for §401(k), §403(b), §457, and SARSEPs increases to $18,000 (up from $17,500 applicable for 2014).  The catch up contribution limit for those aged 50 or older as of the end of the year increases to $6,000 (up from $5,500 applicable for 2014).

The maximum elective deferral to SIMPLE plans increases to $12,500 (up from $12,000 applicable for 2014).  The catch-up maximum increases to $3,000 (up from $2,500 applicable for 2014).

The maximum contribution to IRAs remains at $5,500.  The catch-up for IRAs is not subject to annual indexing and remains at $1,000.  The modified AGI phase-out ranges for 2015 will be:
$61,000-$71,000 (up from $60,000-$70,000 applicable for 2014)
MFJ = $98,000-$118,000 (up from $96,000-$116,000 applicable for 2014)

Roth IRA AGI phase-out limits increase to $116,000-$131,000 (up from $114,000-$129,000 applicable for 2014).  For MFJ these amounts are $183,000-$193,000 (up from $181,000-$191,000 applicable for 2014).

The IRS Notice also has the other pension related indexed amounts such as key employee, top heavy, and “control employee” limits.

A copy of Notice 2014-99 can be found at www.irs.gov/pub/ by clicking on irs-news and then clicking on IR-14-99.


UPCOMING SEMINARS LISTED BELOW

This text has been shared with you courtesy of:  David & Mary Mellem, EAs & Ashwaubenon Tax Professionals, 920-496-1065 (920-496-9111).  davidmellem@yahoo.com, davidmellemea@yahoo.com, marymellem@yahoo.com, marymellemea@yahoo.com.

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UPCOMING SEMINARS:

October 28 – Massachusetts/Rhode Island Chapter of National Association of Tax Professionals in Mansfield, MA.  Mary is presenting Bankruptcy, HSAs, Schedule D & Form 8949, and Audit Proofing Business Returns.  For more information go to www.massrinatp.org .

November 7 & 8 – Oregon Association of Tax Consultants.  David & Mary will be presenting Schedules K1 (S corporation, partnership, trust, estate) and basis, Corporation Liquidation, Schedule A Nuances, HSAs, Elections, and Net Operating Losses.  For more information go to http://www.oatc-oregon.org/Portland/ .

November 10 – Utah Chapter of National Association of Tax Professionals in the Larry Miller Center at the Salt Lake Community College in Sandy, UT.  David is presenting Patient Protection and Affordable Care Act (i.e., ObamaCare); Schedules L, M1 and M2; and Audit proofing business returns.  For more information go to www.natptax.com, click on Chapters, NATP Chapters, and Utah.

More details will be in future emails regarding the additional seminars listed below:
January 7, 2015 – Southeast Chapter of Wisconsin Association of Accounts for 4 CPE hours from 1pm-5pm.  Federal and Wisconsin Tax Update

January 9, 2015 – Wisconsin Society of Enrolled Agents for 8 CPE hours.  Federal and Wisconsin Tax Update.