2015 Defined Contribution Plans

The IRS highlighted the following adjustments taking effect on January 1, 2015: For 401(k), 403(b) and most 457 plans, the COLA increases for dollar limits on benefits and contributions are as follows: Defined Contribution Plan Limits 2015   2014 Maximum employee elective deferral $18,000   $17,500 Employee catch-up contribution (ages 50 and older) $6,000  

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IRS Prohibits Employers from Paying Individual Medical Plan Premiums

On November 6, 2014, the Departments of Labor (DOL), Health and Human Services (HHS) and the Treasury (Departments) issued FAQs clarifying ACA implementation compliance as it relates to premium reimbursement arrangements. The FAQs clarify after-tax reimbursements and cash compensation for individual premiums do not comply with the ACA’s market reforms and may trigger tax penalties.

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