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).
Wednesday, April 24, 2019 | 7:30 AM – 9:30 AM EDT | The Hartford Club