Compensation Cap

 

Definition

Maximum amount of compensation on that may be taken into consideration when determining contributions  to employer sponsored retirement plans,  such as SEP IRAs, SIMPLE IRAs, 403(b) arrangements, qualified plans-such as 401(k)-profit sharing and pension plans..

The compensation cap does not apply to SIMPLE IRA matching contributions

 

Referring Cite

IRC § 401(a)(17), IRC § 404(l)

 

Additional Helpful Information

Compensation cap history

Year

Amount

2015

$265,000

2014

$260,000

2013

$255,000

2012

$250,000

2011

$245,000

2010

$245,000

2009

$245,000

2008

$230,000

2007

$225,000

2006

$220,000

2005

$210,000

2004

$205,000

2003

$200,000

2002

$200,000

2001

$170,000

2000

$170,000