Broker Check

Annual Plan Limits

    2013 2014 2015
Compensation $255,000 $260,000 $265,000
Limits on benefits and contributions:
  Defined contribution plans $51,000 $52,000 $53,000
  Defined benefit plans $205,000 $210,000 $210,000
  401(k), 403(b) and 457 plan elective deferrals $17,500 $17,500 $18,000
  SIMPLE plan elective deferrals $12,000 $12,000 $12,500
  IRA $5,500 $5,500 $5,500
Catch-up contributions:
  401(k), 403(b) and 457 plans $5,500 $5,500 $6,000
  SIMPLE plans $2,500 $2,500 $3,000
  IRA $1,000 $1,000 $1,000
“Highly Compensated” definition $115,000 $115,000 $120,000
“Key Employee” definition:
  Officer $165,000 $170,000 $170,000
  1% owner $150,000 $150,000 $150,000
Social Security:
  Taxable wage base $113,700 $117,000 $118,500
  Social Security tax rate* 6.20% 6.20% 6.20%
  Medicare tax rate 1.45% 1.45% 1.45%
  Combined tax rate 7.65% 7.65% 7.65%

* Beginning 2013, a medicare surtax of 0.9% applies to wages exceeding 250,000. There is a secondary surtax of 3.8% that may apply to unearned income for certain taxpayers as well.

Source: IRS.gov