2014 – 2015 Cost of Living Adjustments and Tax Act Changes

IRA, Simple

2014 2015
Maximum Contribution-Traditional IRA, Roth IRA
Age under 50 Age 50 or over $5,500 $6,500
Age under 50 Age 50 or over $5,500 $6,500
Maximum SIMPLE Salary Reduction
Age under 50 Age 50 or over $12,000 $14,500
Age under 50 Age 50 or over $12,500 $15,500
Deductibility Phaseout
Single filer Joint Filer $60,000 $96,000
Single filer Joint Filer $61,000 $98,000

Employer Sponsored Retirement Plans

Maximum Salary Deferral, 401(k), 403(b) (TSA), or 457 Plan
Age under 50 Age 50 or over $17,500 $23,000
Age under 50 Age 50 or over $18,000 $24,000
Maximum Plan Compensation $260,000 $265,000
Defined Benefit Plan Dollar Limitation $210,000 $210,000
Defined Contribution Dollar Limitation $52,000 $53,000
Highly Compensated Employee $115,000 $120,000

Social Security

Taxable Wage Base $117,000 $118,500
Benefit Increase from Prior Year 1.5% 1.3%
Average Retirement Benefit, Individual $1,294 $1,328
Average Retirement Benefit, Couple $2,111 $2,176
Maximum Retirement Benefit Age 66, $2,642 Age 66, $2,663
Maximum Earnings, Early Retirement, before Reduction of Benefits $15,480 $15,720

Estate Planning

Applicable Credit Equivalent $5,340,000 $5,430,000
Generation Skipping Transfer Tax $5,340,000 $5,430,000
Annual Gift Tax Exclusion $14,000 $14,000
Lifetime Gift Tax Exclusion $5,340,000 $5,430,000
Annual Gift Tax Exclusion, Non-US Citizen Spouse $145,000 $147,000

FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC.

Information provided by Advanced Underwriting Consultants.  January 2015 Life Live Newsletter.  www.ALICSonline.com

We are required by IRS Circular 230 to inform you that any statements contained herein are not intended or written to be used, and cannot be used, by you or any other taxpayers, for the purpose of avoiding any penalties that may be imposed by federal tax law. Life Live presents general information for the use of life insurance professionals. For specific information that can be rlied upon in particular circumstances, please consult with a professional advisor.

Related terms: Annuities, Industry News


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