Good news savers! The IRS announced today new 2015 retirement contribution limits for retirement accounts. Here’s what you need to know:
- The elective deferral (contribution) limit for employees who participate in a 401(k) plan is increased from $17,500 to $18,000.
- The catch-up contribution limit for employees aged 50 and over who participate in 401(k) plans is increased from $5,500 to $6,000
–> This means that if you are 50 or older, you can contribute up to $24,000 in your 401(k) in 2015.
- The limit on annual contributions to an Individual Retirement Arrangement (IRA) remains unchanged at $5,500. The additional catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of-living adjustment and remains $1,000.
–> This means that if you are 50 or older, you can contribute up to $6,500 in your IRA in 2015.
- The AGI phase-out range for taxpayers making contributions to a Roth IRA is $183,000 to $193,000 for married couples filing jointly, up from $181,000 to $191,000 in 2014. For singles and heads of household, the income phase-out range is $116,000 to $131,000, up from $114,000 to $129,000. For a married individual filing a separate return, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.
Check the IRS website for more information on 2015 retirement contribution limits.