[Updated on October 22, 2014. New CPI number confirmed projections made here two months ago.]
The government released the Consumer Price Index for September 2014. Inflation is higher this year but still low by historical standard. The new inflation number confirmed my projection of the 2015 contribution limits for 401k/403b/457 plans. The contribution limit for traditional and Roth IRAs was finalized in September, which only depends on the inflation numbers through August.
401k/403b/457 Elective Deferral Limit
401k/403b/457 contribution limit will increase by $500 to $18,000 in 2015. If you are age 50 or over, the catch-up contribution limit will also increase by $500 to $6,000.
If you are self-employed, the total employer plus employee contributions to all defined contribution plans by the same employer will go up by $1,000 from $52,000 to $53,000 in 2015.
SIMPLE 401k and SIMPLE IRA Contribution Limit
SIMPLE 401k and SIMPLE IRA plans have a lower limit than 401k plans. It will also go up by $500 to $12,500 in 2015. If you are age 50 or over, the catch-up contribution limit will also increase by $500 to $3,000.
Traditional and Roth IRA Contribution Limit
Traditional and Roth IRA contribution limit will stay the same at $5,500 in 2015. The age 50 catch up limit is fixed by law at $1,000.
|Limit on employee contributions to 401k, 403b, or 457 plan||$17,500||$18,000||$500|
|Limit on age 50+ catchup contributions to 401k, 403b, or 457 plan||$5,500||$6,000||$500|
|Traditional and Roth IRA contribution limit||$5,500||$5,500||None|
|Traditional and Roth IRA age 50+ catchup contribution limit||$1,000||$1,000||None|
|SIMPLE 401k or SIMPLE IRA contributions limit||$12,000||$12,500||$500|
|SIMPLE 401k or SIMPLE IRA age 50+ catchup contributions limit||$2,500||$3,000||$500|
|Maximum annual additions to all defined contribution plans by the same employer||$52,000||$53,000||$1,000|
|Highly Compensated Employee definition||$115,000||$120,000||$5,000|
[Photo credit: Flickr user SalFalko]