2015 2016 $5,011 $5,011 Maximum Monthly Guaranteed Benefit $57 $64 Flat Premium Rate IMPORTANT COLAs and SCHEDULED INCREASES 2015 2016 2014 Limit for Defined Benefit Plans Sec. 415(b)(1)(A). Maximum yearly benefit allowed is the lesser of 100 $210,000 percent of the average highest three (Indexed in or the indicated $210,000 $210,000 years’ compensation $5,000 figure. Reductions apply for plans with increments) pre-65 normal retirement ages and for participants with less than 10 years of service. $53,000 or 100% of $52,000 or $53,000 or Limit for Defined Contribution Plans compensation Sec. 415(c)(1)(A). Maximum annual 100% of 100% of (Indexed in addition is lesser of these numbers. compensation compensation $1,000 increments) IMPORTANT COLAs and SCHEDULED INCREASES 2015 2016 2014 Definition of Key Employee in Top-Heavy Plan Sec. 416(i)(1)(A)(i). A key employee is one who, $170,000 during the prior year, was either (a) an officer with (Indexed in compensation in excess of the listed figure; (b) a $170,000 $170,000 $5,000 5% owner; or (c) a 1% owner with compensation increments) over $150,000. Family Attribution rules apply in determining if a person is a 5% owner.
2015 2016 Maximum Monthly Guaranteed Benefit $5,011 $5,011 Flat Premium Rate $57 $64 IMPORTANT COLAs and SCHEDULED INCREASES 2014 2015 2016 Limit for Defined Benefit Plans Sec. 415(b)(1)(A). Maximum yearly benefit allowed is the lesser of 100 percent of the average highest three years’ compensation or the indicated figure. Reductions apply for plans with pre-65 normal retirement ages and for participants with less than 10 years of service. $210,000 $210,000 $210,000 (Indexed in $5,000 increments) Limit for Defined Contribution Plans Sec. 415(c)(1)(A). Maximum annual addition is lesser of these numbers. $52,000 or 100% of compensation $53,000 or 100% of compensation $53,000 or 100% of compensation (Indexed in $1,000 increments) IMPORTANT COLAs and SCHEDULED INCREASES 2014 2015 2016 Definition of Key Employee in Top-Heavy Plan Sec. 416(i)(1)(A)(i). A key employee is one who, during the prior year, was either (a) an officer with compensation in excess of the listed figure; (b) a 5% owner; or (c) a 1% owner with compensation over $150,000. Family Attribution rules apply in determining if a person is a 5% owner. $170,000 $170,000 $170,000 (Indexed in $5,000 increments)