2015 Retirement Plan Benefit and Contribution Limits Announced

On October 23, the IRS announced benefit and contribution limits for qualified and non-qualified retirement plans for the 2015 tax year.

Compensation limit for employer contributions
For 2015, compensation must be limited to $265,000 for purposes of calculating 401(k) Pension Plan employer contributions and Retirement Security (RS) Plan benefit accruals. The 2014 maximum annual compensation limit is $260,000.

401(k) Plan pre-tax contribution and catch-up limits
Employees may be most interested in the maximum amount of pre-tax contributions they can make to their 401(k) Plan accounts. This limit increased by $500 to $18,000 for 2015. For participants who are age 50 and older, the catch-up contribution limit has also increased by $500 to $6,000 (allowing for a combined limit of $24,000 for 2015).

Click on this link for a chart with benefit and contribution limits for both the 401(k) and RS Plans for 2015. 2014 limits are included for comparison purposes. Full details about the 2015 pension limitations are available on the IRS website. A chart of historical limits is also available on the IRS website at irs.gov,

New payroll deduction forms with the 2015 limits are located online at My Benefits > Document Library > Documents for Coops > Retirement Plans > 401(k) Pension Plan > 401(k) Pension Plan Payroll Deduction Form

If you have questions, contact the Member Contact Center at 866.673.2299 or contactcenter@nreca.coop.