The IRS has announced the new COLA increases for qualified plan limits for 2015. The most significant changes that will likely affect your retirement plans are outlined below.

The §402(g) elective deferral (employee contribution) limit and the “catch-up” contribution limit increased from $17,500 to $18,000 and $5,500 to $6,000, respectively, for 401(k), 403(b) and most 457 plans.

The dollar threshold for determining “highly compensated employee” status increased from $115,000 to $120,000, and the annual compensation limit under §401(a)(17) that governs the amount of compensation that may be considered in a defined contribution plan increased from $260,000 to $265,000.

The §415(c)(1)(A) limit on total contributions to a defined contribution plan was increased from $52,000 to $53,000.

The §415(b)(1)(A) limitation on the annual benefit under a defined benefit pension plan remained at $210,000.

Additionally, the taxable wage base for social security increased from $117,000 to $118,500.  For a full listing of changes, including those impacting IRAs, SEPs and SIMPLEs, please see  the IRS’ COLA Table.