The Social Security Administration (SSA) recently issued a cost-of-living adjustment for the Social Security taxable wage limit. For tax year 2015, the maximum amount of earnings subject to the Social Security tax will increase to $118,500 ($1,500 increase from 2014). The employee and employer tax rate will remain unchanged at 6.2%. Due to the increase in the wage limit, the maximum Social Security tax payable by an employee will be $7,347 ($93 increase from 2014).
2015 COLA INCREASES FOR DOLLAR LIMIATIONS ON BENEFITS AND CONTRIBUTIONS
The Internal Revenue Service (IRS) also issued a cost-of-living adjustment regarding dollar limitations for pension plans and other retirement-related items for the 2015 tax year. The increase in the 2015 limitations results from an increase in the cost-of-living index. Significant increases are as follows:
Some of the significant benefit plan limitations that remain unchanged include the defined benefit limitation and limit on annual contributions to an individual retirement arrangement (IRA).
Please Join Us! 13th Annual Dan McCarty Memorial
Thursday, February 13, 2020
Petruzzello's, 6950 Rochester Road Troy, MI 48085