Pension Plan Contribution Limits for 2015

Pension plans, also called annuities, are a type of retirement plan, but they are not the same thing as a 401(k), an IRA, or other retirement plans.

The IRS announces cost of living adjustments for pension plan dollar limitations annually for each Tax Year. Section 415 of the Internal Revenue Code provides for dollar limitations on benefits and contributions under qualified retirement plans, and requires that the IRS annually adjust these limits for inflation and increases in cost-of-living.

2015 Dollar Amount Limits on Pension Plan Contributions

  • The limitation on the annual benefit under a defined benefit plan is $210,000.
  • The limitation for defined contribution plans is $53,000.
  • The limitation on the exclusion for elective deferrals is $18,000.
  • The annual compensation limit is $265,000.
  • The dollar limitation concerning the definition of key employee in a "top-heavy" plan is $170,000.
  • The dollar amount for determining the maximum account balance in an employee stock ownership plan subject to a 5 year distribution period is $1,070,000. The dollar amount used to determine the lengthening of the 5 year distribution period is $210,000.
  • The limitation used in the definition of highly compensated employee is $120,000.
  • The dollar limitation for catch-up contributions to an applicable employer plan other than a plan for individuals aged 50 or over is $6,000.
  • The dollar limitation for catch-up contributions to an applicable employer plan for individuals aged 50 or over is $3,000.
  • The annual compensation limitation for eligible participants in certain governmental plans that, under the plan as in effect on July 1, 1993, allowed cost of living adjustments to the compensation limitation under the plan to be taken into account, is $395,000.
  • The compensation amount regarding simplified employee pensions (SEPs) is $600.
  • The limitation regarding SIMPLE retirement accounts is $12,500.
  • The limitation on deferrals concerning deferred compensation plans of state and local governments and tax-exempt organizations is $18,000.
  • The compensation amount concerning the definition of "control employee" for fringe benefit valuation purposes is $105,000 (or $215,000).
  • The adjusted gross income limitation for determining the retirement savings contribution credit for taxpayers filing a joint return is $36,500. The limitation is $39,500 (or $61,000).
  • The adjusted gross income limitation for determining the retirement savings contribution credit for taxpayers filing as head of household is $27,375. The limitation $29,625 (or $45,750).
  • The adjusted gross income limitation for determining the retirement savings contribution credit for all other taxpayers is $18,250. The limitation is $19,750 (or $30,500).
  • The deductible amount for an individual making qualified retirement contributions is $5,500.
  • The applicable dollar amount for determining the deductible amount of an IRA contribution for taxpayers who are active participants filing a joint return or as a qualifying widow(er) is $98,000. The applicable dollar amount for all other taxpayers (other than married taxpayers filing separate returns) is $61,000. The applicable dollar amount for a taxpayer who is not an active participant but whose spouse is an active participant is $183,000.
  • The adjusted gross income limitation for determining the maximum Roth IRA contribution for taxpayers filing a joint return or as a qualifying widow(er) is $183,000. The adjusted gross income limitation for all other taxpayers (other than married taxpayers filing separate returns) is $116,000.
  • The dollar amount used to determine excess employee compensation with respect to a single-employer defined benefit pension plan for which the special election has been made is $1,101,000.

Related Information about Pensions and Retirement Income

Retirement Plans and Taxes

Saver's Tax Credit for Retirement Contributions

Maximum Retirement Plan Contribution Limits

Minimum Distribution Limits for Retirement Income

Tax Penalties for Early Withdrawal of Retirement Benefits

Taxable Social Security Benefits