12 Nov 2015 Cost-of-Living Adjustments
Originally posted November 4, 2014 on www.ubabenefits.com.
Many employee benefit limits are automatically adjusted each year for inflation (this is often referred to as an “indexed” limit). The Internal Revenue Service and the Social Security Administration have released a number of indexed figures for 2015.
Limits of particular interest to employers include the following.
For health and Section 125 plans:
The health flexible spending account (HFSA) maximum employee contribution is increasing to $2,550.
The maximum out-of-pocket limit that applies to non-grandfathered group health plans that are not coupled with a health savings account (HSA) will be $6,600 per individual and $13,200 per family.
The maximum out-of-pocket for a high deductible health plan coupled with an HSA will increase to $6,450 per individual and $12,900 per family.
The minimum deductible for a high deductible health plan coupled with a health savings account (HSA) will increase to $1,300 per individual and $2,600 per family.
The maximum HSA contribution will increase to $3,350 for individual coverage and $6,650 for family coverage.
The catch-up contribution (available to those aged 55 and older) remains at $1,000.
For qualified plans:
The annual deferral for 401(k), 403(b), and most 457(b) plans will increase to $18,000.
The catch-up contribution limits (available to those aged 50 and older) will increase to $6,000.
The threshold for “highly compensated employees” will increase to $120,000.
The threshold for an officer to have “key employee” status remains at $170,000.
The annual compensation limit will increase to $265,000.
Social Security/Medicare Withholding:
The taxable wage base will increase to $118,500.
The OASDI tax rate remains at 6.2%.
The Medicare tax rate remains at 1.45%.
For your reference, 2015 Annual Limits Card.
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2015 Annual Benefit Plan Amounts
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Contribution & Benefit Limits
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2014 Limit
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2015 Limit
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Section 401(k), 403(b), or 457(b) annual deferral
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$17,500
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$18,000
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SIMPLE plan annual deferral
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$12,000
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$12,500
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Section 415 maximums
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– annual benefit from defined benefit plan
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$210,000
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$210,000
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– annual additions to defined contribution plan
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$52,000
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$53,000
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Maximum IRA contribution
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$5,500
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$5,500
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Catch-up contribution limits
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– retirement plan
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$5,500
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$6,000
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– SIMPLE plan
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$2,500
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$3,000
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– IRA
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$1,000
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$1,000
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Compensation Amounts
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Annual compensation limit
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$260,000
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$265,000
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Grandfathered governmental plan participants
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$385,000
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$395,000
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Highly compensated employees
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– any employee*
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$115,000**
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$120,000**
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– 5 percent owner
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no minimum
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no minimum
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*Employer may elect to limit to top-paid 20%
**Due to the look-back rule, applies in determining HCEs during following year
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Key employees
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– officer
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$170,000
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$170,000
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– 1 percent owner
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$150,000
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$150,000
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– 5 percent owner
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no minimum
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no minimum
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Small Employer Health Insurance Credit Average Wage Phase-Out
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$25,400
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$25,800
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2015 Annual Benefit Plan Amounts
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Social Security/Medicare
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2014 Limit
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2015 Limit
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– OASDI taxable wage base
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$117,000
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$118,500
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– OASDI tax rate – employer
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6.2%
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6.2%
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– OASDI tax rate – employee
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6.2%
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6.2%
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– Medicare tax rate – employer
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1.45%
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1.45%
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– Medicare tax rate – employee
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1.45%>
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1.45%>
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Maximum income without reducing Social Security retirement benefits
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– SSRA* or over
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no limit
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no limit
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– year individual attains SSRA*
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$41,400/yr^
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$41,880/yr^
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– under SSRA*
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$15,480/yr
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$15,720/yr
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> Employer must withhold additional 0.9% from compensation in excess of $200,000
* Social Security Retirement Age (age at which an individual may receive an unreduced monthly benefit)
^ No limit on earnings beginning the month an individual attains SSRA
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Health Plan Limits
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Maximum Health FSA
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– employee deferral
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$2,500
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$2,550
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– carryover
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$500
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$500
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Maximum HSA contribution
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– individual
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$3,300
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$3,350
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– family
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$6,550
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$6,650
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– catch-up
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$1,000
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$1,000
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Minimum HDHP deductible
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– individual
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$1,250
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$1,300
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– family
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$2,500
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$2,600
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Maximum HDHP out-of-pocket
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– individual
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$6,350
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$6,450
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– family
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$12,700
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$12,900
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Maximum out-of-pocket (non-grandfathered plans)
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– individual
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$6,350
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$6,600
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– family
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$12,700
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$13,200
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Transitional Reinsurance Fee (per person)
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$63/yr
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$44/yr
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