Each year the Internal Revenue Service (IRS) announces the new limits for various aspects of employee benefits plans, principally as a result of the increase in the applicable cost-of-living indexes. For 2015 the Cost-of-Living Adjustment (COLA) is 1.7 % based on the increase in the Consumer Price Index (CPI-W). Due to this increase the IRS announced the following limits and thresholds effective for plan years beginning in 2015.

2015 Pre-Tax Limits Released 2015 2014
Highly Compensated Salary Definition $120,000 $115,000
Key Employee in Top-Heavy Plan Salary Definition $170,000 $170,000
Maximum Pre-Tax Contribution Limits (401(k)/403(b), most 457 plans) $18,000 $17,500
Pre-Tax 401(k) Catch-up Limits (over age 50) $6,000 $5,500
Catch-up Contribution SIMPLE 401(k) plans $3,000 $2,500
Maximum Salary Deferral SIMPLE 401(k) plans $12,500 $12,000
Minimum Compensation Amount SEPs (401(a), 403(b), SEPs plans) $600 $550
Maximum Compensation Amount (401(a), 403(b), SEPs plans) $265,000 $260,000
Health Savings Account (HSA) Limits (employer + employee) Individual – $3,350 Individual – $3,300
Health Savings Account (HSA) Limits (employer + employee) Family – $6,650 Family – $6,550
Health Savings Account (HSA) Limits (employer + employee) Catch Up – $1,000 Catch-Up $1,000
Maximum Out-of-Pocket HSA High Deductible Health Plan (HDHP) Individual – $6,450 Individual $6,350
Maximum Out-of-Pocket HSA High Deductible Health Plan (HDHP) Family – $12,900 Individual $12,700
Minimum Deductible HSA High Deductible Health Plan (HDHP) Individual – $1,300 Individual $1,250
Minimum Deductible HSA High Deductible Health Plan (HDHP) Family – $2,600 Family $2,500
Transportation Benefits Parking – $250 Parking $250
Transportation Benefits Transit – $130 Transit $130
Medical Out-of-Pocket Expenses (Flexible Spending Accounts (FSA)) $2,550 $2,500
Dependent Expenses (Flexible Spending Accounts (FSA)) $5,000 $5,000
Social Security Taxable Wage Base $118,500 $117,000

Next Steps for Employers:

  1. Note the 2015 IRS Benefit and IRA limits; Employers should update their plan documents with the new IRS limits.
  2. Notify HR Knowledge of all plan changes to we may capture these changes on your benefits-at-a-glance and other important documents by emailing benefitsupport@hrknowledge.com.

This content is provided with the understanding that HR Knowledge is not rendering legal advice. While every effort is made to provide current information, the law changes regularly and laws may vary depending on the state or municipality. The material is made available for informational purposes only and is not a substitute for legal advice or your professional judgment. You should review applicable laws in your jurisdiction and consult experienced counsel for legal advice. If you have any questions regarding this advisory, please contact HR Knowledge at 508.339.1300 or email us at HR@hrknowledge.com.