IRS Limits for 2015Submitted by Karstens Investments on October 29th, 2015
By Mark E. Johnson, AIFA®
On October 23, the IRS announced the cost of living increases for dollar limitations on pension plans and other retirement savings accounts. For employees participating in a 401(k), 403(b), 457 or a federal government Thrift Savings plan, the annual elective contribution maximum increased from $17,500 to $18,000 for 2015. The catch-up contribution for individuals that will be 50 years or older in 2015 also increased from $5,500 to $6,000. The annual additions limitation for all employer and employee contributions made on an employee’s behalf during the calendar year increased from $52,000 to $53,000 for 2015. Lastly, the contribution maximum for SIMPLE plans also increased to $12,500 and $3,000 for catch-up contributions.
The dollar limitation for contributions to IRAs remains unchanged at $5,500 and $1,000 for IRA catch-up contributions. Many of the income limitations applicable to phase-out provisions for IRAs and Roth IRA accounts have increased from 2014 levels. •