Max Allowable Company Sponsored Retirement Plan Contribution Increased For 2015
- The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan will be increased from $17,500 to $18,000. The catch-up contribution limit for employees aged 50 and over who participate in these plans will also increase from $5,500 to $6,000.
- Unfortunately, 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.
- The deduction for taxpayers making contributions to a traditional IRA is phased out for singles and heads of household who are covered by a workplace retirement plan and have modified adjusted gross incomes (AGI) between $61,000 and $71,000, up from $60,000 and $70,000 in 2014. For married couples the income phase-out range will be $98,000 to $118,000, up from $96,000 to $116,000.
- Additionally, the AGI phase-out range for taxpayers making contributions to a Roth IRA will be $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 will be $116,000 to $131,000, up from $114,000 to $129,000.
Please contact us if you have any questions about these retirement plan contribution rules and how they apply to you at your earliest convenience.Posted 25 October, 2014 /wittenbergcpa.com/