IRA and Retirement Plan Limits for 2015

November 16, 2014

Many IRA and retirement plan limits are indexed for inflation each year. On October 23, 2014, the IRS issued the inflation-adjusted numbers for 2015, and many of the limits have increased.


IRA contribution limits


The maximum amount you can contribute to a traditional IRA or Roth IRA in 2015 is $5,500 (or 100% of your earned income, if less), unchanged from 2014. The maximum catch-up contribution for those age 50 or older remains at $1,000.


Roth IRA contribution limits for 2015


If your filing status is single/head of household, you can contribute the full $5,500 to a Roth IRA in 2015. if your Modified Adjusted Gross Income (MAGI) is $116,000 or less (up from $114,000 in 2014). And if you're married and filing a joint return, you can make a full contribution if your MAGI is $183,000 or less (up from $181,000 in 2014).


Employer retirement plans


The maximum amount you can contribute (your "elective deferrals") to a 401(k) plan has increased for 2015. The limit (which also applies to 403(b), 457(b), and SAR-SEP plans, as well as the Federal Thrift Plan) is $18,000 in 2015 (up from $17,500 in 2014). If you're age 50 or older, you can also make catch-up contributions of up to $6,000 to these plans in 2015 (up from $5,500 in 2014).


The amount you can contribute to a SIMPLE IRA or SIMPLE 401(k) plan has increased to $12,500 for 2015, up from $12,000 in 2014. The catch-up limit for those age 50 or older has also increased, to $3,000 (up from $2,500 in 2014).


Note: Contributions can't exceed 100% of your income.


The maximum amount that can be allocated to your account in a defined contribution plan (for example, a 401(k) plan or profit-sharing plan) in 2015 is $53,000 (up from $52,000 in 2014), plus age-50 catch-up contributions. This includes both your contributions and your employer's contributions. Happy saving!


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