Many employee benefit limits are automatically adjusted each year for inflation (this is often referred to as an “indexed” limit). The Internal Revenue Service and the Social Security Administration have released a number of indexed figures for 2015.
Limits of particular interest to employers include the following.
For health and Section 125 plans:
- The health flexible spending account (HFSA) maximum employee contribution is increasing to $2,550.
- The maximum out-of-pocket limit that applies to non-grandfathered group health plans that are not coupled with a health savings account (HSA) will be $6,600 per individual and $13,200 per family.
- The maximum out-of-pocket for a high deductible health plan coupled with an HSA will increase to $6,450 per individual and $12,900 per family.
- The minimum deductible for a high deductible health plan coupled with a health savings account (HSA) will increase to $1,300 per individual and $2,600 per family.
- The maximum HSA contribution will increase to $3,350 for individual coverage and $6,650 for family coverage. The catch-up contribution (available to those aged 55 and older) remains at $1,000.
For qualified plans:
- The annual deferral for 401(k), 403(b), and most 457(b) plans will increase to $18,000.
- The catch-up contribution limits (available to those aged 50 and older) will increase to $6,000.
- The threshold for “highly compensated employees” will increase to $120,000.
- The threshold for an officer to have “key employee” status remains at $170,000
- The annual compensation limit will increase to $265,000
Social Security/Medicare Withholding:
- The taxable wage base will increase to $118,500
- The OASDI tax rate remains at 6.2%
- The Medicare tax rate remains at 1.45%