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Cost of living changes

CostofLiving_84149107

The Internal Revenue Service recently announced the cost-of-living adjustments for tax year 2015. Below, we have provided a chart representing the changes in pension plan limitations and increases in benefit and compensation limits. If you have questions or would like help understanding how the adjustments will affect you or your company, please contact your retirement plan series administrator or contact LGT at www.lgt-cpa.com or (214) 871-7500.

Retirement Plans Limits  
20142015
Limits on Benefits and Contributions:
401(k) & 403(b) plans, elective deferral limit
457(b) plan, total contribution limit
Age 50 catch-up contribution limit
Defined contribution plan, total contribution limit
Defined benefit plan, annual accrual limit


$17,500
$17,500
$5,500
$52,000
$210,000

$18,000
$18,000
$6,000
$53,000
$210,000
"Highly Compensated Employee" status$115,000$120,000
Annual Compensation Limit$260,000$265,000
"Key Employee" officer status$170,000$170,000
SIMPLE plans:
Elective deferral limit
Catch-up contribution limit

$12,000
$2,500

$12,500
$3,000
IRAs
Contribution limit
Catch-up contribution limit

$5,500
$1,000

$5,500
$1,000

Social Security Limits  
20142015
FICA Wage Base$117,000$118,500
Earnings Test Threshold:
Before retirement age
Year of normal retirement

$15,480
$41,400

$15,720
$41,880
Maximum Monthly Benefit$2,642$2,663

HEALTH SAVINGS ACCOUNTS  
20142015
Annual HSA Contribution Deduction Limit:
Self-only coverage
Family coverage
Catch-up contribution

$3,300
$6,550
$1,000

$3,350
$6,650
$1,000
Out-of-Pocket Spending Limit:
Self-only coverage
Family coverage

$6,350
$12,700

$6,450
$12,900
Minimum Annual Deductible:
Self-only coverage
Family coverage

$1,250
$2,500

$1,300
$2,600

HEALTH CARE FSA  
20142015
Annual Salary Reduction Limit$2,500$2,550

QUALIFIED TRANSPORTATION FRINGE BENEFIT  
20142015
Maximum Monthly Qualified Parking Benefit$250$250
Maximum Monthly Qualified Transit Benefit$130$130