The Internal Revenue Service (IRS) has issued its new cost-of-living adjustments for the year 2015. These tax limits are adjusted annually according to various economic data and benchmarks. They should be taken carefully into account when doing your tax planning for the new year, whether as an individual or organization.
Here are the new limits for 2015 and the current year:
| 2015 | 2014 | |
| 401(k) deferral limits | $18,000 | $17,500 |
| Catch-up Contribution to Qualified Plans | $6,000 | $5,500 |
| Highly compensated employee | $120,000 | $115,000 |
| Annual compensation limit | $265,000 | $260,000 |
| Social Security taxable wage base | $118,500 | $117,000 |
| Section 415 limit | $53,000 | $52,000 |
| Traditional IRA limits | $5,500 | $5,500 |
| Catch-up Contribution to IRAs | $1,000 | $1,000 |
| Healthcare flexible spending account | $2,550 | $2,500 |
| Mileage reimbursement | $0.575/mile | $0.56/mile |
If you need any guidance about how the new IRS limits will affect your tax planning picture, please call Nick Hopkins at (317) 608-6695 or email [email protected].